It lies at the junction of the Red River (Song Hong) and the Nam Ti River approximately 160 miles (260 km) northwest of Hanoi.[1] It is a market town for timber located on the Haiphong railway to Yunnan Province in China.
The town was invaded by the Chinese in 1979 and the border was closed and not reopened until 1993[2] Lao Cai has a carbide factory.