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One hundred kilometres east of Ban Viang Kham, Route 8 passes through the sprawling boom town of LAK XAO , which was carved out of the hills by the logging company, Phudoi, in the 1980s, to facilitate border trade with Vietnam. For the few travellers who pass through Lak Xao, it's little more than a launching pad for trips into Vietnam, 35km to the east, though its market does have some interesting gold and silver stalls, selling jewellery from minority tribes and old silver bars etched with Chinese characters. You might also see villagers from remote hilltribes, dressed in their finest traditional clothes. The rag-tag buses that make the trip to Lak Xao from Thakhek and Vientiane grind to a dusty halt in the dirt lot outside the market, 3km from the town's only hotel , the Phudoi (under $5). Tuk-tuks (1500K) are on hand to ferry you down the main road, Route 8B, to the hotel complex, whose most easily identifiable building is an odd bluish A-frame. For food, go to the Thiphavongsay restaurant , near the market, which has a range of traditional Lao dishes. Next door, a newly constructed bank exchanges American dollars and Vietnamese dong.
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