Demarcation of boundaries with Cambodia, Thailand, and Vietnam is largely complete, but with Thailand several areas including Mekong River islets remain in dispute; ongoing disputes with Thailand and Vietnam over squatters.
World's third-largest illicit opium producer (estimated cultivation in 2003 - 18,900 hectares, a 19% decrease over 2002; estimated potential production in 2003 - 200 metric tons, a 11% increase from 2002); potential heroin producer; transshipment point for heroin and methamphetamine produced in Burma; illicit producer of cannabis; growing methamphetamine abuse problem.