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

July 28, 2021

Outlook for Cannabis Liberalization and CBD Market Authorization in Laos

Subscribe to Updates

In recent years, many countries have begun exploring the pharmacological effects of the cannabis plant and the economic benefits of cannabis liberalization. For example, Laos’ neighbor Thailand has cautiously moved forward with legalizing both cannabis and hemp for medical purposes and to boost the Thailand’s economy. The authorities in Laos are likewise looking into the possibility of opening up some of the country’s strict prohibitions on CBD and medical cannabis. However, little has been done so far, and consumption, production, and commercial use of cannabis—including cultivation and commercialization of hemp-related products—remain strictly prohibited. Those who market products related to hemp or CBD in Laos currently risk criminal or civil liabilities.

Legal Landscape and Enforcement Risks

The cannabis plant (Cannabis sativa L.) is known mainly for producing two compounds: tetrahydrocannabinol (THC), which is a psychoactive substance, and cannabidiol (CBD), a nonpsychoactive compound with several beneficial pharmacological effects. A cannabis plant with a relatively high amount of THC exerting psychoactive effects is known as “marijuana” (Cannabis sativa L. subsp. indica), while a cannabis plant with very little THC is considered “hemp” (Cannabis sativa L. subsp. sativa).

Marijuana and hemp have not been defined under Lao law, and the Lao authorities usually take the approach that marijuana is synonymous with the cannabis plant, regardless of the percentage of THC in the plant. The Law on Narcotics No. 10/NA, dated December 25, 2007, prohibits narcotics from being used in Laos. The Decree on the Implementation of the Law on Narcotics No. 076/PM, dated March 20, 2009, declares the “cannabis plant” a narcotic-producing plant, prohibiting its cultivation and possession, and officially places THC on the country’s list of prohibited narcotics. As CBD is extracted from the cannabis plant, products containing the compound are therefore likely to be prohibited as well.

The Penal Code No. 26/NA, dated May 17, 2017, prohibits all activity related to marijuana (here meaning all cannabis) cultivation, trafficking, and possession, setting punishment for violations at three months’ to life imprisonment and fines of LAK 500,000–200 million (approx. USD 52–21,200), depending on the nature of the goods and the activity.

Outlook for Cannabis Liberalization in Laos

In 2019, the Lao government created an ad hoc committee to determine whether the legalization of hemp cultivation in Laos for medicinal use would be feasible, and whether the country might benefit from such a policy. In this vein, the country’s authorities have allowed some local companies to grow hemp in very specific zones under pilot programs, while maintaining the strict overall prohibition on cultivation and commercialization of hemp-related products.

This change in the authorities’ outlook on hemp-related products may evidence their interest in diversifying Laos’ sources of income. The country’s efforts to expand its market potential is not surprising, given that it has developed trusted labels to promote the “made in Laos” brand, and has registered geographical indications (e.g, Bolaven Coffee, Khao Kai Noy rice) to penetrate foreign markets. The market potential of hemp, the future of the CBD market, and the possible impact of these products may encourage the Lao authorities to liberalize cannabis, or at least production, extraction, and commercial use of CBD in Laos—the economic benefits of which could also ease COVID-19’s adverse effects on the Lao economy.

Globally, prospects for cannabis and CBD-related products are bright, with various countries (such as Canada and the U.S.) liberalizing regulations for cannabis and CBD-related products. In Europe, pressured by the EU Court of Justice’s recent decision, and region-wide advocacy for liberalizing restrictions and commercializing CBD products, a more tolerant approach to CBD products may soon be adopted in order not to contravene the principle of the free movement of goods in the European Single Market.

Meanwhile, in Laos, this global trend for recognizing the beneficial effects of cannabis, and specifically CBD, may incentivize the country to encourage development of high-quality products containing CBD and revise its legal framework for cannabis and CBD. Laos’ manufacture of these products could potentially bring further economic growth to the country through direct revenue, investment in research and development, establishment of scientific infrastructure, and the development of local expertise on the subject—all of which could foster sustainable foreign direct investment in the future.

This article was prepared with the assistance of international intern Keoni Williams.

Related Professionals

Industries

Consumer Products

Life Sciences

Practices

Regulatory Affairs

Location

RELATED INSIGHTS​ 

August 8, 2024
On July 19, 2024, Thailand’s Ministry of Public Health Notification No. 450 B.E.2567 (2024) came into effect after being published in the Government Gazette the day before. The notification introduces significant updates to the labeling requirements for prepackaged foods. This new regulation consolidates and updates Thailand’s rules for food labeling by repealing and replacing several previous notifications. The notification’s key changes and their implications for food businesses are identified below. 1. Clarified “Best Before” Definition The notification aligns the definition of “best before” with Codex standards. It now refers to the date marking the end of the period during which the food maintains its best quality under stated storage conditions. After this date, food quality may change, and the product cannot be marketed. 2. Updated Labeling Exceptions Certain foods are exempt from labeling requirements, with the latest list including: Foods sold directly to consumers by manufacturers who can provide product information. Unprocessed foods. Some fresh foods not sold directly to consumers. Prepackaged foods produced and sold for immediate consumption in food service settings. However, any of these exempt foods that have received food serial numbers must still have labels that comply with the notification. 3. Expiration Date and Best-Before Date Display The notification provides clearer language for displaying the expiration date and best-before date. If specific wording is required by other notifications, it must be followed. English equivalents are now permitted alongside Thai text. 4. Warning Displays Multiple applicable warnings can now be consolidated and displayed together, provided the complete message is included as specified. 5. Claims about Substances or Ingredients New guidelines have been established for making claims about food additives and ingredients. Claims should be factual, not deceptive, and provably not false. 6. Label Placement and Design Labels must be permanently affixed, proportionate to the packaging, and
Read More
August 8, 2024
Tilleke & Gibbins has contributed the Thailand chapter to the 2024 edition of Pharmaceutical Advertising from the International Comparative Legal Guides (ICLG) series published by Global Legal Group. This detailed guide offers an in-depth examination of pharmaceutical advertising laws and regulations in multiple jurisdictions around the globe. Each chapter of the guide, structured in a Q&A format, is organized into comprehensive sections covering various aspects of pharmaceutical advertising, including: General rules and codes of practice governing pharmaceutical advertising Required arrangements for ensuring compliance with advertising regulations Procedures for obtaining advertising approvals from regulatory authorities Penalties for non-compliance with advertising rules Guidelines for providing information prior to product authorization Requirements for advertisements directed at healthcare professionals Restrictions on the content of pharmaceutical advertisements The complete Thailand chapter is available as a PDF below. The Thailand chapter—and the full Pharmaceutical Advertising guide—are also freely available on the ICLG website.
Read More
July 31, 2024
On July 18. 2024, Vietnam’s Ministry of Health issued Circular No. 12/2024/TT-BYT promulgating National Technical Regulation QCVN 20-1:2024/BYT on the limits of contaminants for health supplements (“Circular 12”). The new national technical regulation is the very first relating to health supplements, and is expected to have a great impact on the control of health supplement quality in Vietnam. Circular 12 will take effect on August 1, 2025. Contents of Circular 12 The new circular prescribes limits of contaminants (heavy metals and microorganisms), testing samples and testing methods, management requirements, and responsibilities of entities manufacturing and trading in health supplements. Supplemented alcohol products which are declared as health supplements are notably excluded from the scope of the regulation. Transitional Provisions Health supplements which (i) have been granted a declaration registration certificate, and (ii) are manufactured before August 1, 2025, are allowed to continue to be imported, traded, and circulated until the expiry date of the product, even if it is not aligned with Circular 12, except when there is food safety warning. Declaration registration dossiers for health supplements submitted before August 1, 2025, will continue to be handled in accordance with the prevailing regulations at the time of submission. From August 1, 2025, if a health supplement with a granted declaration registration certificate has a manufacturer’s standard that does not comply with Circular 12, the party manufacturing/trading in the product must adjust the product standard to conform to Circular 12 and notify the authority of this adjustment.
Read More
July 9, 2024
On July 3, 2024, the Committee on Contracts of Thailand’s Consumer Protection Board announced the Notification re: Stipulation of Cash-on-Delivery (COD) Logistics Services as a Controlled-Receipt Business under the Consumer Protection Act B.E. 2522 (1979). The notification regulates businesses “providing goods transportation services that collect cash on delivery,” which refers to business operators responsible for transporting goods from sender (i.e., the merchant of the goods) to consumer (i.e., the purchaser of the goods) and upon delivery collects payment from the consumer either in cash or via bank transfer. The obligations that the notification imposes on these business operators are described below. Receipts Business operators must prepare a receipt as evidence of payment according to the specified requirements and deliver it to the consumer immediately upon receiving payment for the goods. The receipt must include text in Thai that is clearly visible and legible, with a font size of at least two millimeters and no more than 11 characters per inch. The text must contain essential information and conditions as specified in the notification, including: The duration that the business operator will hold the money received from the consumer before releasing it to the sender; The timeframe within which the consumer must notify the business operator to return the goods and request a refund; Information about the employees who deliver the goods and collect payment from consumers; The name of the person authorized to issue the receipt; Details about the parcel specifying the nature of the goods, including the name, type, kind, characteristics, size, weight, quantity, color, volume or capacity, and price of the goods; and A statement that the consumer has the right to reject the delivered goods or receive a refund. The receipt also must not contain any statement prohibited by the notification. Examples include: Text stipulating that
Read More