It's deeply sad that it's not going to get released in Laos soon," she said. "It's a very, very sensitive issue in Laos – the building of dams and the relocation of people."
Shot in northern Laos and Thailand, The Rocket centres on a family who are relocated to shanty village despite big promises from the company building a dam that will submerge their home.
The film has screened at more than 30 international festivals, winning a batch of awards, and is Australia's entry for the best foreign language Oscar.
Wilczynski hopes the film will eventually be seen in Laos despite the ban.
"There have been other films that have been banned in Laos and then over time have been released," she said. "We hope there will be ways the Lao community can see the film."
While a record 76 films are competing for the foreign-language Oscar, many Hollywood pundits consider The Rocket a solid chance, given the acclaim it has received in the US, including three awards at the New York's Tribeca Film Festival, selection for Sundance's touring program and a warm reception at AFI Fest in Los Angeles.
Wilczynski has been raising funds for screenings for Oscar voters in New York and Los Angeles.
"It's been wonderful to see it mentioned in so many Oscars predictions sites as having a really good chance," she said.
"Hopefully the fact there has been so much buzz on those sites will help it get seen by Academy members. But the foreign-language category is notoriously unpredictable – it's the section that most Oscar websites say is the hardest to predict based on history – so we just hope that people can see it."
After selling to more than 20 countries, The Rocket opens in the US in January. On limited release in Australian cinemas, it has taken more than $330,000.