Paper has been made by hand in the wider region for over 700 years using the bark of the local sa or mulberry tree (broussonetia papyrifera vent). The bark is crushed and soaked in water until it had dissolved into a paste. The liquid is then scooped out, poured through a bamboo sieve and finally placed in a thin layer on a bamboo bed and dried in the sun.

Traditionally sa paper was used for calligraphy and for making festive temple decorations, umbrellas, fans and kites. In former times it was also used as a filter in the manufacture of lacquerware. In recent years the art of sa paper handicraft has been revived, particularly in Luang Prabang where it is now used to create lampshades, writing paper, greetings cards and bookmarks.

In an environmentally-focused initiative funded by the Japan International Co-operation Agency (JICA), Laos through its Forest Conservation and Afforestation Project (FORCAP), Japanese paper weaving techniques have been taught to villagers in Vangvieng District of Vientiane Province, enabling them to produce an innovative new handicraft which meshes the traditional Lao crafts of weaving and papermaking. Sa paper is used for weft and cotton or silk for warp; yarns are dyed with natural materials that are available locally, and woven into local patterns. In 2002 Vangvieng Posa Handicraft was commended under the UNESCO-AHPADA Seal of Excellence for Handicraft Products in South East Asia scheme.