The Lao People's Democratic Republic is a small country with a land area of 236800 km2, stretching more than 1799 km from the North to the South, and between 100-400 km from the East to the West. It is a landlocked country that shares a 416-km from border with People's Republic of China in the North, a 492-km border with Cambodia in the East and a 230-km border with Myanmar in the West.

About seventy percent of the territory consists of mountains ranges, highlands and abundance of rivers, including 1865 km stretch of the border Mekong river, defining its border with Myanmar and major part of the border with Thailand. The Mekong River and its tributaries are navigable and provide alluvial deposits of the fertile plains. The mountains pose difficulties for transportation and communication and complicate development. But sixty percent of the water of the Mekong River, which originate in the Lao PDR, can produce a large potential of hydropower generation.

Lao PDR has a total population of about 4,9 millions with a density of 19 persons per square kilometer and an inreased rate of 2,6%.

The climate of Lao PDR governed by two monsoons. The cool dries northeast monsoon from October to April and the west south monsoon from May to September. Temperatures range from 15'c. to 35 'c. and 0'c to 30'c in the mountainous area. Average annual rainfall varies from about 150 cm to 200 cm in Vientiane.

Agriculture is the principal economic sector in the Lao PDR accounting for 54,3 % of the total value added in 1995 and covering a wide range of activities from subsistence production to agriculture related industries. About 85 % of the population are engaged in agriculture. Forests cover about 47% of the country, comprising of a variety of commercial trees suitable for producing of sawtimber, plywood, parquets, furniture.