Beneath Muong Lay`s beauty lies a difficult existence for locals. Despite a marked increase in tourist numbers, for most of the people it`s a hard living

 Far from busy trade routes, normal commerce is limited and the town has only been really successful in harvesting cash crops such opium and timber. Needless to say, opium harvesting does not find favour with the central government, which has been trying to discourage the Montagnards from producing poppies.

If the opium business is falling on hard times, the same must be said for the timber industry. In recent years the forest cover has been reduced and flooding has increased dramatically. Around 140 people lost their lives in 1990 in a devastating flood on the Da River that swept through the narrow valley. An even worse flood in 1996 killed 100 people and cut all roads into town for two months; the ruins of the flooded former cultural hall can be seen in the middle of town.

It seems that this kind of flooding will become a permanent feature of Muong Lay. There is a massive dam under construction, just above the current Song Da Reservoir, and this will fill the valley with water. When this comes to pass (not before 2010), this will be the largest hydroelectric station in Southeast Asia. It also could mean that in the future the only way to visit Muong Lay will be by submarine.

Being underwater, however, would at least keep things cooler. Odd as it might seem, in summer Muong Lay is one of the hottest places in Vietnam. June and July temperatures can soar as high as 40°C.