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,

Dino Santaniello, head of Tilleke & Gibbins’ office in Vientiane, provided an updated Laos chapter for Foreign Investment Review 2023, a global guide to the legal and regulatory environment for foreign investment in 29 jurisdictions worldwide. Published and distributed by Lexology Getting the Deal Through (GTDT), the guide discusses law and policy on oversight of foreign investment, regulatory frameworks, procedural requirements, and other important considerations for foreign investors. The Laos chapter aims to give investors an understanding of what to expect when establishing operations and operating in the Lao market, covering: Law and Policy: Government policies and practices, main laws and their scope of application (including details on investment promotional measures), definitions, rules for state-owned enterprises and sovereign wealth funds, relevant authorities and oversight, and national interest provisions. Procedure: Jurisdictional thresholds, national interest clearance, securing approval, the review process for competition clearance and associated penalties, involvement of authorities, facilitation of clearance, and post-closing regulatory powers. Substantive assessment: Substantive tests for clearance, authorities’ consultation with other countries and other relevant parties, transactional prohibitions and objections, mitigating arrangements and challenges to a decision, and protection of confidential information. Recent cases, updates, and trends: Relevant recent case law, key recent and ongoing developments. A PDF of the Laos chapter can be accessed through the button below. Tilleke & Gibbins also contributed the Cambodia, Myanmar, and Vietnam chapters to Foreign Investment Review 2023. To browse the full guide covering all 29 jurisdictions, please visit the Getting the Deal Through website.

In decisions dated 29 September 2022, the Lao Department of Intellectual Property (DIP) has cancelled two trademark registrations based on their confusing similarity to earlier marks. An official from the DIP unofficially confirmed that these decisions are the first of their kind in Laos and, as such, constitute a positive step that puts legal provisions into actual practice. Background In Laos, cancellation proceedings against a registered mark are not common, as the number of applications in the country is relatively low and thorough substantive examination only began to be carried out in recent years. There was previously no precedent for how cancellation decisions would be handled, despite the Law on Intellectual Property (No. 38/NA of 15 November 2017) allowing a third party to file a petition for the cancellation of a registered mark if it can be proven that the mark should not be granted registration. The Law on Intellectual Property states that a third party may object to, or request the cancellation of, a trademark registration within five years of its date of publication in the Official Gazette. However, it is difficult to ascertain how to calculate the five-year period if the mark was registered before June 2019, as publication in the Official Gazette was first made available at that time. This could mean that the five-year statutory limitation for trademark cancellation in Laos could start from June 2024, but how this will be applied in practice remains to be seen. The Case This case began when Siam Kubota Corporation Co Ltd took action against two marks that looked similar to its own earlier marks (see Figure 1): Figure 1. Earlier registered marks Siam Kubota registered its marks in 2009 for goods in Class 12, and has extensively used and protected the marks in Laos. After reviewing its

The rapidly growing middle class in Southeast Asia is bringing with it increased household wealth, increased consumption, and increased investment. As a result, the commercial banking sector has seen a boom in the more economically developed countries of the region—especially in Thailand. A select few foreign banks have also been very successful in Cambodia, Laos, Myanmar, and Vietnam for many years, but as other banks seek to replicate their Thai success in these new markets, the field looks likely to become much more crowded in coming years. Six major Thai banks are active in at least one other jurisdiction in mainland Southeast Asia, with some already operating across them all, and many larger international banks also beginning to take note. Amid that background, this guide examines the legal frameworks for foreign banks seeking to operate in these jurisdictions, and addresses some current and upcoming developments that investors should note. The full guide is available as a PDF through the button below.