Cannabis law and legislation in Laos

Medical use

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.

Recreational use

The Law on Narcotics (2007) and the Penal Code (2017) still prohibit the production, trade and use of all types of cannabis. 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 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.

Industrial use

Decision No. 3789/MOH on the Control of Hemp for Medication and Products, issued on December 28, 2022, 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.

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.

Patentability

There is no general prohibition on patenting cannabis-based products, as long as the cannabis product complies with the requirements (e.g., 0.2% THC).  For pharmaceutical products, the extension of the TRIPS General Transition Period for Least Developed Countries—including Laos—provides a waiver regarding pharmaceutical products, which exempts LDCs from protecting pharmaceutical patents and test data until January 1, 2033.

Latest developments

On December 28, 2022, the Ministry of Health of Laos issued Decision No. 3789/MOH on the Control of Hemp for Medication and Products. This was the first notable development related to cannabis since 2019, when the Lao government established an ad hoc committee to consider the legalization of cannabis. The 2022 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.

Portrait of
Dino Santaniello
Partner, Tilleke & Gibbins, Head, Laos