The birth of Japanese assistance to Laos came about in 1965 with the dispatch of Japanese Overseas Cooperation Volunteers (JOCVs); as such Laos was among the first countries in the world to receive JOCVs. Today, Japan is the top bilateral donor to Laos and plays a key role in their foreign assistance. Since 1986, Laos has been undergoing a shift to a market economy under its socialist government. The joining of ASEAN in 1997 and the economic crisis the same year proved that Laos has reached a turning point in its entry into the global marketplace. However, its terrain is mountainous and landlocked and its human resources are still on the way of development. Establishing Laos’s place in Asia is certain to be a great challenge. Laos’s irreplaceable assets are its rich natural resources and cultural traditions. When pursuing future growth, it must try to preserve those assets. JICA’s Laos Office has established four priority areas in response to the present situation. These four areas are: (i) Human Resource Development; (ii) Support for Basic Human Needs (BHN); (iii) Agricultural and Rural Development; and (iv) Improvement of Social Infrastructure and Energy. The overall goal is to assist the Lao people in building and developing their country on their own.