Wiang Kalong (Chiang Rai, Thailand) is a centuries-old ceramic craft village that exemplifies a heritage-based development model linked to the OTOP programme. However, existing studies have largely focused on economic impacts and policy performance, leaving the relationship between cultural heritage, community governance, and local development insufficiently explored. Drawing on a qualitative research design that combines field observations and community-level analysis, this paper investigates the mechanisms through which cultural heritage is transformed into a development resource within the OTOP framework. The findings indicate that the success of Wiang Kalong is shaped by the interaction of cultural capital, social capital, local leadership, and institutional support, further reinforced by livelihood diversification (e.g., tea-based products). Nevertheless, the study also identifies risks associated with heritage commodification and increasing dependence on tourism. The paper contributes theoretically by clarifying the role of heritage governance and community agency in heritage-based development, and offers policy implications for strengthening the integration of OCOP, heritage conservation, and cultural tourism development in Vietnam.