The objective of this study is to analyze the socio-economic conditions of Lao communities for establishment of community-based resources management system. The study area is Vangvieng district located 160lcm in the north of Vientiane where the slush-and-burn farming system is dominant. The major results of this study are 1) the establishment of the villages are affected by historical background and ethnical diversity; 2) more than half of the villagers are still engaged in slush-and-burn farming for their survival and are suffering from problems in food security, sanitation and education; 3) social functional groups are active in the village level and communal works can improve their living conditions and livelihood.