Lai Chau is a newly established mountainous border province. Although facing a lot of difficulties, Lai Chau has a great deal of potential which is at the initial exploitation stage. The economy of the province grew at 9% in the 2004-2006 period. Economic structure was transformed forwards as planned. The ratio of industrial production and construction reached 25.5%, an increase of 2.78% from 2003. The ratio of commerce and services reached 29%. Other branches posted encouraging rates. Most socio-economic targets were achieved or surpassed.

Social and cultural services were also developed. Transport, schools, medical stations, radio broadcasting and television, sport and physical exercise were strengthened. Reduction in poverty and an increase in employment both made good progress.. Population growth was reduced to below 0.3%. The number of poor households was reduced from 70% in 2004 to below 40% in 2006 (according to new standards). The movement of building new cultural hamlets, villages and communities was expanded in all administrative units in the province. Radio broadcasting covered 80% of the provincial territorial area while television coverage was 70% of the provincial territory.