This paper proposes an effective algorithm of license plate recognition for industrial applications. By applying Canny edge detection on a vehicle image, it is possible to find a connected rectangular, which is a strong candidate for license plate. The color information of license plate separates plates into white and green. Then, OTSU binary image processing and foreground neighbor pixel propagation algorithm CLNF will be applied to each license plates to reduce noise except numbers and letters. Finally, through labeling, numbers and letters will be extracted from the license plate. Letter and number regions, separated from the plate, pass through mesh method and thinning process for extracting feature vectors by X-Y projection method. The extracted feature vectors are compared with the pre-learned weighting values by backpropagation neural network to execute final recognition process. The experiment results show that the proposed license plate recognition algorithm works effectively.