During the last fifteen years Lao has been in the process of transforming its economy from a centrally planned system to one that is market-oriented. In the past ten years, the macroeconomic performance has improved significantly; yet, the situation remains fragile and further efforts are necessary to maintain stability. Despite all the progress achieved, Lao has some of the lowest social indicators in the Southeast Asia region. Agriculture remains the major sector of the economy contributing more than 50% of GDP and employing over 80% of the labor force. Vientiane the main capital city and largest urban concentration with 663,000 inhabitants (2001) has more than 60% of the country’s urban population. The three other main cities, are Luang Phrabang, Pakse, and Savannakhet.