Victory Monument was built to commemorate the Thai victory in the Franco-Thai War. The war was a result of a territorial dispute over parts of French Indochina. The Thai government urged the French government to follow international law and make changes to the boundaries of Thailand and French Indochina. The French government kept delaying negotiations, however after the Fall of France in 1940, the French government proposed a peace treaty promising that the French army would not invade Thai territory. The French government did not want to be fighting wars in both its homeland and colonies. The Thai government agreed to sign the treaty if the French agreed to amend the borders and return the vassal states in Laos and Cambodia which were ceded to France during the reign of King Rama V to Thailand.
The French government refused and opened fire across the Mekhong River and sent military aircraft into Thai territory. On 28 November 1940, the French army dropped bombs in Nakhonn Phanom province. The Thai army launched a counterattack and annexed some areas of French Indochina which had been a vassal state of Thailand. The war continued until 28 January 1941. Japan offered to be a middleman to mediate the conflict. In the Japanese-sponsored conference, France agreed to return ceded provinces including parts of Luang Prabang Champassak, Serei Saophoan and Phra Tabong to Thailand. Fifty-nine Thai troops were killed in the war.
After the Franco-Thai war ended, the Thai administration of General Plaek Phibunsongkhram resolved to construct a monument to honour the soldiers who sacrificed their lives in the war and to remind younger generations of their bravery. The monument was named Victory Monument and is situated at the intersection of Ratchawithi Road, Phayathai Road, and Phahonyothin Road which was called Prachathipat Road at the time. The size of the monument is 27,124 square metres. The monument was designed by Mom Luang Poom Malakul. Silpa Bhirasri was the head of the sculptor team.
General Phraya Phahonphonphayuhasena presided over the groundbreaking ceremony held on 24 June 1941 which was also National Day. The opening ceremony was held one year later on 24 June 1942. The opening ceremony was presided over by General Plaek Phibunsongkhram. A parade held by the Thai Army, Navy, Air Force, Police, Public Works unit, Military Youth, Red Cross volunteers and students was held to celebrate the opening.