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

December 6, 2018

Growing Hemp in Thailand Is Now Permissible

Informed Counsel

From regulation and production to research and development, product development, and marketing, the hemp (Cannabis sativa) industry is set to outperform most expectations in the very near future. Hemp offers various economic benefits for retail products, including the durability of hemp fiber in the production of clothing and the nutritional benefits of hemp seeds and oil.   

Significant legalization and decriminalization efforts of cannabis products around the world and increased development of a cannabis sector have encouraged Thailand’s Ministry of Public Health to release a Ministerial Regulation Re: Licensing and Approval for the Production, Distribution or Possession of Narcotics Category V Hemp. This regulation, which came into effect on January 5, 2018, permits the growing of hemp once an appropriate license has been obtained. However, it does not address marijuana or any other forms of cannabis; thus, their status remains unchanged. Nonetheless, this regulation is an important step, signifying that the Thai government is ready to move toward accepting the potential scientific and commercial benefits of hemp.

Ministerial Regulation and Its Key Considerations   

The Ministerial Regulation allows persons to produce, dispose of, and possess hemp for industrial and medical purposes, if an appropriate license is obtained. Although Thailand is moving closer to accepting cannabis, the government is putting in great effort to make sure the industry is controlled with regulatory assurance, given that hemp contains low amounts of tetrahydrocannabinol (THC)—the substance in marijuana (Cannabis indica) that induces intoxication, which is still not permitted in Thailand.

For the first three years after the promulgation of the regulation, only state agencies will be permitted to apply for a license to produce, distribute, or possess hemp. There is a possibility that this trial period, applicable only to state agencies, will be extended beyond the initial three years. Therefore, private entities should request collaboration arrangements with state agencies in order to conduct research and development on hemp products until the trial period has passed.    

When the application process eventually opens to the public, only competent, non-bankrupt, Thai nationals domiciled in Thailand, who have not had a license restricted under the Narcotics Act B.E. 2522 (1979) or the Psychotropic Substances Act B.E. 2559 (2016), will be allowed to apply for a license. The application must first be submitted to officials at the Narcotics Control Division of the Food and Drug Administration (FDA). Following approval by the FDA, the Secretary General of the FDA is required to obtain further approval from the Prime Minister, after which a license will be granted.   

The license comes with several restrictions, including: cultivated hemp must not exceed 1% THC on a dry-weight basis; hemp can only be grown in areas specified in the license; and hemp seeds must be sourced from seed producers who have a valid license to harvest hemp. A license will allow a license holder to use hemp containing not more than 1% THC on a dry-weight basis for the following purposes:

  1. For planting, harvesting, or converting hemp for household uses.
  2. For planting, harvesting, or converting hemp for commercial uses.
  3. For planting, harvesting, or converting hemp for research.
  4. To produce seeds for sale or distribution for the purposes of (1), (2), or (3).
  5. To distribute fresh stems or other parts, as permitted for use under the purposes of (1), (2), or (3), or for other benefits as prescribed by the Narcotics Control Committee.
  6. To use for other benefits, as accepted by the Narcotics Control Committee.

Further specifications that need to be followed by license holders with regard to the production, distribution, or possession of hemp are outlined in the Ministerial Regulation.

A New Market   

Moving forward, legal permission for the cultivation and production of hemp is a positive step—taken by a number of other countries—that opens the door to a viable and potentially profitable new market for investors in Thailand. The hemp industry could be the necessary boost the Thai economy needs to further propel the country. To ensure that there are positive developments in this nascent industry, the Thai government should be ready to give full regulatory support to the hemp industry and its licensed growers. Additionally, companies should begin to prepare applications for available licenses and should start developing successful business strategies in anticipation of further permissible regulatory options in the future.

Other Cannabis Developments   

In addition to this liberalization of hemp, a draft amendment to Bill for the Narcotics Act was submitted to the Thai National Legislative Assembly (NLA) on September 27, 2018. According to the draft’s preamble, the purpose of this amendment includes “allowing the research for the medical benefits of Cannabis and Kratom (Mitragyna speciosa) for applications in treatment under the supervision of healthcare professionals.”   

In response to  public queries as to whether the legislative process for “unlocking cannabis” may be accelerated, Deputy Prime Minister, Dr. Visanu Kruengam, publicly stated on October 19, 2018, that there are a number of legislative pathways by which cannabis may be liberalized including by Royal Emergency Decree and by Order of the National Council for Peace and Order based on Article 44 of the Constitution of Thailand B.E. 2560 (2017). Subsequently, (and quite quickly for the Thai legislative/regulatory process), on October 30, 2018, the NLA held a public conference, stating that the Bill is among the NLA’s current priorities, and the NLA will seek to complete the review process by December 2018.

RELATED INSIGHTS​ 

December 13, 2024
Experts from Tilleke & Gibbins have provided updates for the latest edition of The Pharma Legal Handbook: Vietnam, published by Pharma Boardroom. This comprehensive guide to the legal framework regulating the healthcare and life sciences industries in Vietnam was authored by by the Hanoi-based team of Hien Thi Thu Vu, head of regulatory affairs for Vietnam, and Mai Thi Le, regulatory affairs consultant, the handbook is a must-read for healthcare and life sciences companies that are interested in the Vietnam market. The guide includes eight sections on various important aspects of local regulations: Regulatory, Pricing, and Reimbursement Overview Preclinical & Clinical Trial Requirements Marketing, Manufacturing, Packaging & Labeling, and Advertising Traditional Medicines and Over-the-Counter Products Product Liability Patents and Trademarks Regulatory Reforms Orphan Drugs and Rare Diseases Tilleke & Gibbins has also authored The Pharma Legal Handbook: Thailand, which was updated at the same time as the Vietnam guide. The Pharma Legal Handbook: Vietnam, like all of the country guides from Pharma Boardroom, is available for purchase on the Pharma Boardroom website.
December 13, 2024
Attorneys from Tilleke & Gibbins in Bangkok have provided updates for the latest edition of The Pharma Legal Handbook: Thailand, published by Pharma Boardroom. This comprehensive guide to the legal framework regulating the healthcare and life sciences industries in Thailand was authored by Alan Adcock, partner and director, intellectual property, and head of the firm’s life sciences practice; Dr. Atthachai Homhuan, manager of regulatory affairs; and San Chaithiraphant, senior associate. The handbook is a must-read for healthcare and life sciences companies that are interested in exploring expansion into the Thai market.
December 12, 2024
On November 21, 2024, the National Assembly of Vietnam adopted a law amending and supplementing the 2016 Law on Pharmacy (“Amended Law on Pharmacy”). The Amended Law on Pharmacy simplifies some procedures for the pharmaceutical field, and will take effect on July 1, 2025, except for regulations on drug registration and rights and responsibilities of certain types of pharmaceutical business. Some outstanding points in the Amended Law on Pharmacy are presented below. E-commerce Distribution The Amended Law on Pharmacy allows trading in pharmaceutical products by the e-commerce channel, including e-commerce trading floors, e-commerce sales applications, and e-commerce sales websites with online ordering functions. Accordingly, e-commerce retail of non-prescription drugs is permitted if the drugs are neither specially controlled drugs nor drugs included in the list of drugs restricted for retail sale, and e-commerce wholesale of drugs and drug materials is permitted, as long as they are not specially controlled drugs. New Rights for Import FIEs The amendment provides some additional rights to foreign-invested enterprises (“FIEs”) that import drugs, including the rights to: Repurchase drugs and drug materials manufactured through the technology transfer of the FIE itself in Vietnam, and sell such products to wholesalers; Import drug materials to supply to drug manufacturers in Vietnam that are hired by or receive technology transfer from the FIE itself under a processing contract or technology transfer contract; Deliver and transport drugs and drug materials the FIE has imported, outsourced for processing, or transferred technology for in Vietnam, from the FIE’s warehouse to its wholesalers; Deliver and transport drugs used in aid, sponsorship, humanitarian, and disease prevention and control programs to medical facilities receiving funding; and Transport drug materials imported by the FIE from its warehouse to drug manufacturers that are hired by or receive technology transfer from the FIE itself under a
December 9, 2024
Cambodia’s Law on Seed Management and Plant Breeder’s Rights was enacted in 2008, but it was not until recently that new plant varieties could successfully be registered for protection in the country. Although the law has been in place for some time, recent developments confirmed the application process and a schedule of charges for the registration of new plant varieties. With these developments, breeders have been able to register their new plant varieties in Cambodia since March 1, 2024. Applicants for new plant variety protection must be Cambodian nationals, foreign nationals domiciled in Cambodia, or permanent residents of either a country that is a contracting party to the International Union for the Protection of New Varieties of Plants (UPOV) Convention or a country with which Cambodia has signed a memorandum of understanding on plant variety protection. Applicants can also claim a priority date from the first application for the same plant variety filed in any contracting party of the UPOV Convention within 12 months of the earliest application’s filing date. To be eligible for protection, new plant varieties must satisfy the following criteria: Novelty: A variety is considered “new” if, at the date of filing the application for new plant variety protection, it has not been sold, marketed, or otherwise disposed of others—by or with the consent of the breeder—for more than: One year for any plant variety in Cambodia; Six years for trees and vines or four years for all other plant varieties in countries besides Cambodia. Distinctiveness: A variety must be clearly distinguishable from any other existing varieties. Uniformity: A variety must be sufficiently uniform in its relevant characteristics. Stability: A variety must remain unchanged in its essential characteristics at the end of each cycle of propagation and in each generation. The last three criteria are often