I think the OP exaggerates what he/she sees. What do you expect? It's one of those streets in the suburb of the capital and it's the beginning of the rainy seasons. Vientiane has been developing only since mid-1990. A lot of streets still need to be paved and all those old houses along the streets will be torn down and replaced by new buildings. You cannot compare Vientiane with Singapore, Kuala Lumpur or many big cities in Thailand because those countries have developed themselves long before Laos.