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​ 

February 26, 2026
Laos’ Food and Drug Department (FDD) has been using a new online registration system for drugs since the beginning of the year. The system, which was implemented following the November 2025 issuance of Notice No. 5960/FDD, became the official pathway for submissions on January 1, 2026. Since that date, paper-based registrations have no longer been accepted. This marks a significant advancement in the digitalization of regulatory processes in Laos. As the online system is now the exclusive platform for registration, renewal, and amendments, companies that have not yet aligned their processes to the new system should act promptly to ensure a smooth transition. To assist with this, the FDD will conduct periodic training sessions on the use of the online registration system, which will be delivered either in person or remotely, depending on operator demand. To start using the system, drug and medical device manufacturers, as well as import-export companies, that have not yet registered must submit a formal request identifying the authorized personnel who will access the platform, after which they will be issued user accounts and access codes. Each request must be accompanied by the company’s enterprise registration certificate (incorporation certificate), a copy of the identity card or passport of each designated user, and a scanned copy of their signature. There is no restriction on the number of users per company, allowing flexibility to meet operational needs. Companies that already hold accounts and access codes from the trial phase may continue using them and may apply for additional accounts if needed. Additional Requirements The new system also introduces a standardized format for drug registration numbers. For example, an import drug registration number such as 06 I 4040/15 will be changed to 06-IM-04040-15, and a domestic drug registration number such as 06 L 4040/15 will be changed to
Read More
January 21, 2026
Spurred by global geopolitics and Canada’s Indo-Pacific Strategy, which aims to forge deeper ties with ASEAN, Canadian companies have been showing growing interest in Thailand and Southeast Asia in recent years. To understand the opportunities offered by the region, we sat down with Andrew Stoutley, a Toronto native and the chief operating officer of Tilleke & Gibbins, a leading Southeast Asian regional law firm with over 130 years of history in Thailand. Q: Why are Canadian companies looking at Thailand and Southeast Asia right now? A: Two reasons stand out. First, diversification has moved up the agenda. Many Canadian companies want options outside North America due to tariff volatility and policy uncertainty in the United States, as well as questions around the next Canada–United States–Mexico Agreement mandatory joint review. At the same time, the shift of global production from China to Southeast Asia is accelerating, driven by rising costs, geopolitics, and the need to avoid overreliance on a single market. As a result, Canadian companies are looking for a second production base or a regional hub, and Thailand and its neighbors are natural choices given their manufacturing depth, location, and established supply chains. Second, Canada’s own efforts in the region are gaining traction. The Indo-Pacific Strategy has led to more on-the-ground support, including larger trade missions, upgraded diplomatic posts, and new financing options. Export Development Canada (EDC) now has a presence in Bangkok, giving Canadian companies a direct line to financing and insurance in Thailand. There’s also steady progress on trade frameworks like the recently signed Canada–Indonesia Comprehensive Economic Partnership Agreement (which will come into effect pending domestic procedures), ongoing negotiations of a Canada–ASEAN FTA, and the exciting announcement about the launch of negotiations of a Canada–Thailand FTA. Together, these developments have the potential to make it much easier
Read More
January 8, 2026
Thailand’s approach to cannabis regulation has moved quickly from broad access to a medical, prescription‑only system. The latest government regulation classifies the cannabis flower as a controlled herb under the Thai Traditional Medicine Wisdom Act. The latest rules ban advertising and recreational sales, allow sales only to patients with prescriptions (up to 30 days), and require flowers to come from GACP‑certified (Good Agricultural and Collection Practices) farms. More importantly, cannabis dispensaries can only sell to patients presenting valid prescriptions issued by one of seven professions—medical doctors, Thai traditional practitioners, applied Thai traditional practitioners, traditional Chinese medicine practitioners, pharmacists, dentists, and folk healers—consistent with approved clinical indications. Noncompliance risks license suspension or revocation, and criminal penalties of up to one year’s imprisonment or a THB 20,000 fine. The dispensary‑only model that proliferated in Thailand in recent years is expected to end soon, as the rules will push all cannabis dispensaries into medical settings or retail pharmacies. Dispensaries must convert into medical establishments—clinics, pharmacies, or traditional pharmacies—complete with on‑site licensed practitioners as well as budtenders; strong controls for storage, hygiene, odor, and smoke; and facilities for record-keeping. All flowers dispensed or exported must come from GACP‑certified farms. If the government ends dispensaries outright and forces a conversion to clinics or pharmacies, compensation will not be automatic at the outset. As a result, business operators should plan for compliance and repurposing under the Medical Facilities Act, Modern Drug Act, and Herbal Product Act, which regulate medical clinics, modern pharmacies, and traditional medicine pharmacies, respectively. The table below summarizes the required licenses for clinics, pharmacies, and traditional medicine pharmacies selling cannabis flowers in Thailand. Aside from the specific listed licenses, all three types of establishments must also obtain a license to sell a controlled herb (cannabis flowers) from the Department of Thai Traditional
Read More
January 6, 2026
On December 30, 2025, Thailand’s Electronic Transactions Development Agency (ETDA) notified digital marketplace operators of a consolidated list of “high‑risk products” that are subject to strict monitoring on digital platforms. The list was jointly prepared by the Thai Industrial Standards Institute (TISI) and the Food and Drug Administration (FDA) to guide platform compliance in the initial phase of implementation of the Electronic Transaction Committee’s Notification on Other Measures for Marketplace for Goods with Specific Characteristics under Section 18(2) of the 2022 Royal Decree on Digital Platform Businesses Requiring Notification B.E.2568 (2025). The notice is addressed to operators of digital platform services that function as product marketplaces with specific characteristics laid out in the notification. The ETDA states that the TISI and the FDA are closely monitoring the high‑risk product categories on digital platforms, and the published list serves as the baseline reference for platform screening during the initial phase of the notification’s implementation. High‑Risk Product List The list aggregates categories of products that are illegal to sell online or are otherwise tightly regulated under Thai law, with an emphasis on health-related products, controlled substances, medical devices, and a wide range of industrial products that require certification or compliance with specified Thai Industrial Standards, as detailed below. Prohibited and tightly controlled health products. This includes all categories of modern medicines subject to control other than general household remedies; all categories of controlled herbal products except for over-the-counter herbal products; narcotics; psychotropic substances; and medical devices requiring use in medical facilities or a physician’s prescription. Selected industrial products requiring heightened controls. The list highlights dozens of TISI-regulated items commonly sold online. Examples include pacifiers, rice cookers, electrical wire, food wrap film, crayons, washing machines and dryers, air conditioners, electric cookers and air fryers, water heaters, microwave ovens, LED luminaires, hair dryers
Read More