The study analyses the socioeconomic conditions in Laos communities surrounding the establishment of a community-based resources management system. The study area is Vangvieng district located 160 km in the north of Vientiane where the slash-and-burn farming system is dominant. The major results are (1) establishment of the villages is affected by historical background and ethnic diversity; (2) more than half of the villagers are still engaged in slash-and-burn farming for their survival and are suffering from problems in food security, sanitation and education; (3) social functional groups are active at the village level and communal works can improve living conditions and livelihoods.