Luang Prabang Province's (LPP) forest cover was estimated at 24.2% (0.48 million ha) of the total land area in 1982. This decreased to 12.8% by the early 2000s and then sharply increased to 32.8% (0.65 million ha) in 2010, an annual increase of 2.8% (50,000 ha) from 2002 to 2010. This paper attempts to examine the factors influencing the increase of forest cover in LPP during the 2000s. The study analyzes the influence of local socioeconomic development on changes in forest cover based on forest transition theory (FTT). The study period is relatively short compared to historical studies of forest transition, which often extend over several decades. To overcome this limitation, Huaphanh Province, which showed a decrease in forest cover, was used as a control province for comparison. Secondary social and economic data from various sources were collected and analyzed using qualitative and comparative analysis. The results from this study indicate that the increase in forest cover is closely linked to socioeconomic development in the province. Increasing economic development and urbanization provided alternative employment opportunities for the rural population and led to decreases in both rural population and poverty. In addition, with improvement of infrastructure in rural areas, particularly roads and access to markets, rural households changed their agricultural practices from subsistence-oriented to market-oriented production. As a result, the rate of rural poverty continued to decline and areas of shifting cultivation and upland rice production decreased, which left the formerly cultivated land to fallow for a longer period, allowing the natural recovery of vegetation.