You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

February 21, 2023

Laos Approves Hemp-Related Activities

Subscribe to Updates

On December 28, 2022, the Ministry of Health of Laos issued Decision No. 3789/MOH on the Control of Hemp for Medication and Products (the “Decision”). The Decision approves the regulated cultivation, extraction, production, processing, storage, distribution, utilization, import-export, and transport of hemp. The Decision also authorizes the use of hemp and hemp-related products by the general population, although use of certain products is limited to those with medical prescriptions.

Background

In 2019, the Lao government established an ad hoc committee to consider the legalization of cannabis, as reported previously. The government permitted certain local companies to grow cannabis in specific zones under pilot programs, although it continued to strictly prohibit the use and commercialization, as well as consumption, of cannabis-related products, regardless of the level of psychoactive tetrahydrocannabinol (THC) in the products.

Overview of the Decision

The Decision was issued by the Ministry of Health (which led the ad hoc committee) and permits authorized companies to engage in certain activities involving the use of hemp and the consumption of hemp and hemp-related products. The Decision defines hemp (“porkeo” in Lao) as a “plant that belongs to the same family as ganja and bears the scientific name Cannabis Sativa L. (Cannabis sativa L. subsp. sativa var. sativa) which is a subspecies of ganja (Cannabis Sativa L.).” This definition aims at differentiating hemp from the general definition of ganja or marijuana, which continues to be listed as a prohibited narcotic in Laos.

The Law on Narcotics (2007) and the Penal Code (2017) still prohibit the production, trade and use of all types of cannabis. These laws will need to be amended to ensure that they are aligned with changes set out in the Decision.

 Authorized Hemp Activities

The Decision allows approved companies to engage in the cultivation, extraction, production, processing, storage, distribution, utilization, import-export and transport of hemp. A company intending to engage in any of these authorized activities must obtain approvals from the Ministry of Health and the Ministry of Planning and Investment. Depending on the activity, there are different requirements for obtaining approval. For example, seeds used for cultivation must be registered and facilities used for extraction must be inspected by the Ministry of Health. Engaging in an activity without approval may constitute an offense under the Law on Narcotics and the Penal Code.

The Decision also sets out general requirements that apply to companies engaging in these authorized activities, including that they must employ a registered pharmacist or chemist who holds a bachelor’s degree from a “relevant institution” and has at least five years of experience. It is expected that further regulations on specific hemp-related activities will be issued in the future.

The Decision does not impose restrictions on foreign investment in hemp-related activities, beyond the general restrictions that apply to foreign investment in Laos (for further information please refer to our regional guide Investing in Mainland Southeast Asia).

Sale and Distribution of Hemp Commodities

The Decision regulates the distribution and sale of hemp and hemp-related products in Laos and sets specific requirements for different categories of product.

Medical Prescription Required

Certain hemp-related products may only be distributed and used under a medical prescription. These include:

  • Dried flowers, which must contain no more than 1% THC by weight; and
  • Hemp-related products for use for medical purposes, which must contain no more than 0.2% THC by weight and must contain at least four times as much non-psychoactive cannabidiol (CBD) as THC.

Hemp-related products for use for medical purposes must be registered with the Food and Drug Department (FDD). The Decision does not contain a clear definition of what constitutes a “medical purposes”; further guidance will be required on this point.

Medical Prescription Not Required

Certain hemp-related products can be distributed and used generally, without a medical prescription. These include:

  • Health supplements, which must contain less than 0.2% THC by weight and must be registered with the FDD;
  • Cosmetics containing primarily CBD, which must contain less than 0.2% THC by weight and must be registered with the FDD; and
  • Beverages that contain CBD or hemp essential oil, which must be registered with the FDD.

Conclusion

The climate and fertile soil in Laos have been recognized as providing ideal conditions for growing hemp. It is therefore welcome that Laos follows many other countries in the region and around the world in approving the production and use of hemp. This move is expected to benefit the agricultural industry and raises the prospect that hemp-related products made in Laos can be exported worldwide, contributing to reinforcing “Made in Laos” as an indication of high-quality CBD products from Laos. The recent liberalization of cannabis in Thailand could serve as a model for Laos going forward. Please see our Cannabis and Hemp Business Guide – Thailand for more information on the legal landscape for cannabis in Thailand.

However, it is important to note that several aspects of this new system remain to be clarified, including the process for analyzing the THC percentages of hemp and hemp-related products, ongoing reporting requirements, and the contents of feasibility studies that must be submitted to the Ministry of Health. It is likely that such matters will be clarified through subsequent administrative practice, rather than through further regulations.

Related Professionals

Industries

Consumer Products

Life Sciences

Practices

Corporate/M&A

Regulatory Affairs

Location

RELATED INSIGHTS​ 

August 20, 2026
As part of its membership in Lex Mundi, Tilleke & Gibbins has released the latest edition of its Guide to Doing Business in Thailand, providing an overview of the legal, regulatory, and commercial considerations for companies establishing or expanding operations in Thailand. The 2026 edition offers practical insight into the country’s business environment, investment framework, and operational requirements. The guide covers a wide range of topics relevant to foreign and domestic investors, including: Investment incentives and promotion schemes Financial facilities and banking regulations Exchange controls and money transfers Import and export regulations Business structures and incorporation options Requirements for establishing a business Operational and compliance considerations Business cessation and insolvency procedures Employment and labor laws Taxation Immigration and visa requirements Prepared by Tilleke & Gibbins lawyers across multiple practice areas, the publication outlines key aspects of doing business in Thailand, including foreign investment restrictions, regulatory compliance obligations, corporate structures, employment requirements, and recent legal and economic developments affecting investors. The publication forms part of Lex Mundi’s Country Guides series, a global collection of jurisdiction-specific reference materials prepared by member firms around the world. Together, these guides help companies evaluate opportunities, compare regulatory environments, and plan international business activities across multiple markets. The full Guide to Doing Business in Thailand 2026 is available through the button below.
Read More
August 13, 2026
On August 6, 2026, the National Bank of Cambodia (NBC) issued a notice calling on business owners that issue electronic money, such as e-wallet accounts and stored-value membership cards, to notify the central bank within 90 days. The notice targets businesses that are not licensed banking or financial institutions or payment service providers, but have been issuing e-money to facilitate payments within their own networks. Failure to notify the NBC may result in legal action. Background and Regulatory Basis The NBC has observed that certain businesses, including cafes, restaurants, transportation companies, entertainment centers, and gas stations, have been issuing e-money through e-wallet accounts in mobile apps or membership cards to facilitate customer payments for products or services within their own networks. Customers create e-wallet accounts and load balances to pay for goods or services at the issuing business. The NBC describes this as “single-purpose e-money.” Under the 1999 Law on Banking and Financial Institutions, providing payment facilities to customers forms part of the operations of banking and financial institutions and requires an NBC license. In addition, article 20 of the 2017 Prakas on the Management of Payment Service Institutions further prohibits legal entities other than banking and financial institutions and payment service institutions from issuing e-money. However, article 20 also provides that issuing e-money in certain limited cases does not require a license, but the NBC must be notified in advance in writing. A business may issue single-purpose e-money without a payment service institution license provided it meets all the following conditions and submits written notice to the NBC: The maximum balance per account is KHR 200,000 (approximately USD 50) or equivalent. The total aggregate balance across all accounts does not exceed KHR 800 million (approximately USD 200,000) or equivalent. The e-money is used to pay for products or
Read More
August 10, 2026
On June 17, 2026, Indonesia’s National Agency of Drug and Food Control (BPOM) issued BPOM Regulation No. 10 of 2026 on Nutritional Information on Processed Food Labels. The new regulation, which revokes three previous nutrition labeling regulations, introduces several notable changes affecting food and beverage manufacturers, importers, and distributors. These changes range from updated nutrient reference values and serving-size requirements to the introduction of the Nutri-Level front-of-pack labeling system for certain beverage products. Businesses operating in Indonesia should carefully review these developments and assess their products’ compliance with the new requirements during the transition period. Implementation of the Nutri-Level Labeling System To implement the recently issued decree on Nutri-Level labeling, BPOM Regulation No. 10 of 2026 stipulates the requirements to implement the Nutri-Level labeling system on the front-of-pack. Under the new framework, ready-to-drink beverages, powdered beverages, and liquid or solid concentrates are required to display Nutri-Level labeling on the front label of their packaging. The Nutri-Level labeling system classifies products into color-coded levels A through D based on their sugar, sodium, and total fat content. The applicable Nutri-Level is determined based on the lowest level measured in the assessment of sugar, sodium, and total fat content. For products classified as level C or D, the Nutri-Level label must be accompanied by information on the relevant sugar, sodium, and total fat content per 100 ml of the ready-to-consume product. Products classified as level A or B may either display only the Nutri-Level designation or display the Nutri-Level together with the relevant nutritional information per 100 ml. Minimum Vitamin and Mineral Content Required for Declaration BPOM Regulation No. 10 of 2026 introduces a stricter threshold for the declaration of vitamins and minerals in the nutritional value information section (ING). Vitamins or minerals may only be declared if they are present at a
Read More
August 10, 2026
The drug registration process in Vietnam will be simplified, particularly for foreign applicants, following the recent issuance by Vietnam’s Ministry of Health (MOH) of a new circular that is expected to reduce administrative hurdles. Circular No. 32/2026/TT-BYT on the registration of drugs and medicinal ingredients (Circular 32) was issued on July 29, 2026, and will take effect on October 1, 2026, replacing Circular No. 12/2025/TT-BYT. Key provisions of the new circular are discussed below. Five-Year Data Exclusivity and Five-Month Public Disclosure Framework Circular 32 updates data protection guidelines by explicitly referencing Article 128 of the amended Intellectual Property Law, which sets out that new drugs supported by clinical trial data submitted for the first time will be granted a five-year data exclusivity period from the date of the initial marketing authorization (MA) approval. Subsequent applications that rely on the originator’s protected data will not be eligible for approval from the date of submission of the originator’s registration dossier until five years after the first MA is granted. Furthermore, in accordance with the new regulations, the regulatory authority must publicly disclose information on subsequent applications five months before the granting of MA, providing originator companies with an opportunity to exercise and enforce their intellectual property rights. Simplified Requirements for Foreign Legal Documents Circular 32 expands the circumstances under which legal documents issued by foreign authorities are exempt from consular legalization and authenticity verification requirements. Specifically, such documents may be exempt if the Drug Administration of Vietnam (DAV) is able to verify their authenticity directly through official electronic means, including written confirmation or email correspondence sent directly to the MOH by the competent foreign authority, or publicly accessible English-language databases maintained by recognized foreign regulatory authorities. In addition, the new circular permits the submission of electronic notarized copies of legal documents
Read More