Application and License for Production, Importation, Exportation, Selling or Possession of Hemp, which was published in the Government Gazette on December 30, 2020. On January 29, 2021, Thailand will begin processing applications for licenses to produce, import, export, distribute, and possess hemp (Cannabis sativa), for medical purposes and in textile, pharmaceutical and cosmetics industries.
Asian region is connected to cannabis by tradition. Homeland of Cannabis Sativa, the first plants were cultivated by man in the Region thousands of years ago. The Asian continent holds the potential to become one of the largest cannabis markets in the world with up to 77million potential users.
Thailand, which legalized medical cannabis in February of 2019, is leading in the Asia Pacific area. The authorities aim to benefit not only patients, but also researchers, farmers, tourists, and domestic businesses while protecting the Thai market from big pharma and intellectual property theft.
Thailand seems destined for cannabis cultivation considering its good weather and working conditions. Additionally, cannabis has been used quite frequently within traditional Thai medicine for centuries. Further, the unique strategic position as a strong exporting country within the ASEAN Free Trade Area with a widely known medical and tourist sector leaves room for ambition.
JURISDICTION
The cabinet on August 2020 approved in principle a Public Health Ministry proposal to amend the Narcotics Act
Food and Drug Administration has prepared a draft bill to abolish a 5-year ban on the private sector making cannabis medicine. Under these new legislation and regulations, foreigners will be allowed to get involved as long as they hold shares not exceeding one-third in a company incorporated under local law.
The proposed new law would enable companies to directly apply for a license to agriculturally grow marijuana and hemp plants and industrially manufacture CBD oil for medicinal purposes as long as the products are categorized as Thai traditional medicine or herbal goods. Another requirement is for the applicant to court cooperation and supervision from an existing licensee of modern medicine, Thai traditional medicine or herbal cures under the separate pharmaceutical law.
To protect the Thai economy, understandably, imports of cannabis remain restricted.
MARKET
The Thai medical cannabis market is characterized by high potential, fast juridical developments and a considerable degree of protectionism.
With the country’s cannabis market in full-extent, features like the complex and export-focused economy, cheap industrial production capacity, and beneficial climate will lead to an increased amount of foreign interest, investments, innovations, and new companies forming within the Thai market.
- Healthcare spendings will double in the next 4 years.
- Pharma spendings will reach $14 billion by 2024, of which $311-$647 million could be medical cannabis sales.
- Thailand shows great potential for medical tourism, as the World’s number 3 country for med. tourism.
- Hemp and CBD industries will be further deregulated and show great potential.
- Cannabis will be implemented for tourist convenience.
EXPORT
Thailand is a declared export country.
There are many important trade partners of Thailand, which already have a high demand for medical-grade cannabis or other cannabis-derived products, as well as some which could legalize it in the next few years. The top export destinations of Thailand could be China, the United States, Malaysia, Hong Kong and Germany. Additional, trading partners are Hong-Kong, Australia and Germany which already allow imports of medical cannabis or cannabis-derived products and exhibit a growing cannabis sector.
Even Japan, which has developed a huge market for CBD, which could become one of the top export markets for Thailand in the future.
In the next three years, the country’s cannabis market will attract several foreign investors, thanks to complex and export-focused economy, cheap industrial production capacity, and beneficial climate.
If you need more information or you’re planning an investment in the Thai cannabis market, contact us at info@khabangkok.com
Source CC insights
