Thailand’s cannabis business opportunities are flourishing, however, not for everyone. A lot of foreigners have been willing to invest in the green market but the recent regulations put in place by the government seems to have put a spoke in foreigners’ wheel.
In fact, opportunities for non-citizens to start a business in the country are overestimated, even for partnerships with Thai individuals and institutions.
Since the 29th of January 2021, individuals, legal entities, government offices and companies have been able to register at the FDA office in Bangkok, at the provincial public health offices, to use, import and export cannabis and hemp for the textile, pharmaceutical and cosmetics industries. Currently only certain parts of the plant are allowed to be used, among them are the bark, the stem, the stalk, fiber, the root, the leaves without flowers, the extract with no more than 0,2% of cannabidiol and tetrahydrocannabinol per weight in dry form and finally hemp seeds and their oil extract.
The use for medical purposes has been allowed under strict limitations. The possession and consumption of recreational cannabis remains illegal. A license is necessary for anyone who wishes to manufacture, sell, import, export or possess medical cannabis products in Thailand. The licensing process is a multi-step process with a variety of requirements to the applicant, as well as its shareholders and business operations. Foreign and other private entities are banned from the application process for five years, until the 19th of February 2024.
What about foreign joint ventures opportunities? Well, in order to invest in Thailand’s cannabis industry, it is highly recommended to get legal advice as the regulations are still to be defined. The government is planning to impose a quota of participation for foreign investors which could be limited at 33%.
Several companies offer legal advice on the scope and structure of investments. PUGNATORIUS Ltd is one of them. They specialized in providing information and legal opinions on the regulatory framework as well as negotiating cooperation with Thai research institutes, medical schools, pharmacy schools, pharmaceutical laboratories, universities, hospitals and clinics. They also help in the licensing process to obtain additional approvals and permits.
If the regulations are so strict then why is investing in Thaïland on everyone’s lips? Well, the answer is simple: medical cannabis tourism. Even though tourism has been banned since the beginning of the pandemic, let’s not forget that in 2019, Thaïland welcomed more than 39 millions visitors. Once the health crisis passed, the country could easily become the top green destination.
