In 1986, Laos opened its doors to the global market. With new economic policy mechanisms in place, the country has developed dramatically over the years. The rapid growth brought forth opportunities as well as challenges. This study analyzes traffic congestion in Vientiane, the capital, with a focus on transport mode choices and inequity among commuters. Due to the lack of a reliable database in Laos, the initial step entailed collecting a set of origin–destination data. A total of 498 samples were randomly processed in the data survey, consisting of personal data, household conditions, and travel behaviors. To identify the flow of transport and mode choices, descriptive analysis and a multilevel logit model were employed. The findings reveal the insufficiency of public transit in Vientiane. The preferred modes of transport are motorbikes and private cars. Commuters who use private cars lie in the higher income group, while the low-income group consists of residents who use motorbikes. In addition, the low-income group takes longer to commute as compared to the high-income group. Overall, the lack of public mode choices encourages the use of private cars, leading to critical inequality between low and high-income groups.