This paper analyzed forest land use change in Trans-Boundary Laos-China Biodiversity Conservation Area which is called Namha National Biodiversity Conservation Areas (Namha NBCAs), with 1992 and 2002 TM (ETM). Based on GIS and statistical methods, the intensity, state index of land use change and transfer matrix were used to study spatio-temporal land use change in the region. The results showed that the area of forest land decreased greatly, also the area of bamboo and grassland decreased. The other way round, the area of unstocked forest, slash and burn and rice paddy land increased. As a whole, the intensity of forest land change was higher, but others were lower. From the transfer matrix, most of the forest land changed into unstocked forest and urban area, some to slash and burn. The grassland and bamboo were mainly transferred to forest and unstocked forest. The unstocked forest land mostly came from forest land and grassland. It was showed there were three main causes of the land use change namely: opium poppy cultivation, rubber plantation and also ecotourism activities and finally some policies were developed in order to address the land use change in the study areas.

Forest cover and land use change directly impact biological diversity worldwide, contribute to climate change and affect the ability of biological systems to support human needs by altering ecosystem services. Given the forest land use characteristics and ecosystem types in Luang Namtha Province, Lao PDR, the forest cover and land cover category of Luang Namtha Province were divided into six classes, i.e., current forest (CF), potential forest (PF), other wooded areas (OW), permanent agricultural land (PA), other non-forest areas (NF) and water (W). In first instance, earlier geographic information data (GIS data) of forest cover and land use during 1992 and 2002 was obtained from the Ministry of Agriculture and Forestry (MAF), Lao PDR. Two steps of forest land use change assessment were conducted by the MAF, i.e., plot sampling on satellite image maps (SIMs) to detect the changes of forest cover and land use during 1992 and 2002 for the entire Luang Namtha Province and field verification in order to identify causes of the changes. Secondly, dynamic information of the forest land cover changes during this ten-year period was calculated by means of map algebra in ArcGIS 9.2. Thirdly, based on the theory of ecosystem service functions and the service function values of different global ecosystems, the value of the six forest cover and land use categories in the province was obtained. Finally, ecological environmental effects, produced by the regional land cover changes over the study period, were calculated.