In 1964, rising tension in Vietnam led to rapid buildup of United States troops in what was then South Vietnam. The first USO club to open in Vietnam was in Saigon in 1963. Other clubs soon opened. In 1972 when the United States first began to withdraw, there were a total of 18 clubs in Vietnam and 7 in Thailand.

One of the biggest USO clubs was the Chu Lai USO, located south of Da Nang. It catered to the needs over 16,000 American troops. It was opened in 1967 and sat on a beach overlooking the coast of the South China Sea. Facilities such as a game room, television area, tape recorders and tapes for GIs to record messages to send back home, and recreational facilities outside were all provided. The Sand Stage located on the beach itself, had weekly shows, which were seen by thousands of off-duty servicemen and women.

The USO was for the first time operating in combat areas. Troops coming back from patrol on the frontline were asked to check in their firearms at the door of USO clubs. Armed military guards protected the clubs. The clubs offered not only live shows, but also a place to enjoy American foods such as hamburgers and milkshakes.