Two young Australian women are fighting for their lives in Thai hospitals after drinking tainted alcohol in the tourist town of Vang Vieng in Laos.

The parents of the two 19-year-olds from Melbourne are at their bedsides in separate Thai hospitals — one in Bangkok and the other in Udon Thani, the Australian Broadcasting Corporation reported on Tuesday.

Holly Bowles and Bianca Jones were staying at a backpacker hostel in Vang Vieng, a popular party town north of the Lao capital, Vientiane.

According to the owner of the Nana Hostel, the young women had been out drinking at a nearby bar on the night of Tuesday, Nov 12. In the early hours of Wednesday morning, they were taken to a hospital in Vientiane after falling ill.

Two Danish women in their 20s died and at least 10 people have fallen ill after drinking the tainted alcohol, according to local reports.

The owner of the Nana Hostel in Vang Vieng told ABC he was sure the poisoned drinks were not sold at his bar.

Methanol is a clear liquid chemical that is often illegally added to alcoholic beverages as a cheaper alternative to ethanol.

Consuming even a small amount can be fatal.