Several villages around Luang Prabang are renowned for their traditional handicraft products. The most famous villages are Muang Kaew (or Muang Keo), which produces colorful fabrics and Laotian whiskey, and Ban Xang Khong with fine quality paper and silk. It is easy to visit them by boat or tuk-tuk.
Ban Muang Keo is located near the Pak Ou caves, on the bank of the Mekong River. The village economy is based primarily on the production of colored fabrics woven on simple looms. The village also has a distillery that produces strong liquor from glutinous rice: the Laotian whiskey.
In the village of Ban Xang Khong, local has made and sold Saa paper with motifs of elephants, monks and scenes of Laos traditional life for hundreds of years. Nearby, there is a small breeding site of silkworms.