Louangphabang Oudomxai Phongsali Salavan Savannakhet Vientiane Capital Vientiane Province Xaignabouli Xaisomboun (special administrative zone, dissolved in 2006) Xekong Xiangkhoang The country is further divided into districts ( muang ). Economy The Lao economy is heavily dependent on investment and trade with its neighbors, Thailand, Vietnam, and, especially in the north, China.