Accordingly, the planned area will cover 15,804 ha including Lao Bao and Khe Sanh towns and the five communes of Tan Thanh, Tan Long, Tan Lap, Tan Lien, and Tan Hop in Huong Hoa district. It will be divided into four main parts: the 1,700 ha Lao Bao town will focus on developing trade and export-import services and producing construction materials; the 1,340 ha Khe Sanh town will focus on trade and tourism services, agricultural and mechanical production; an area along Highway 9; and an ecological area for forestry development and eco-tourism.

The Lao Bao special economic trade zone is an important international gateway which plays a key role in promoting trade between countries in the East-West economic corridor. It is one of Quang Tri’s key economic centres and includes two economically significant towns, Lao Bao and Khe Sanh.

It is also within a strategic area for national defence and security.