1. Cannabis Legal History in Thailand

Thailand has a long and complex relationship with cannabis. Historically, cannabis (ganja) was widely used for medical, culinary, and cultural purposes. For centuries, Thai traditional medicine employed cannabis extracts as remedies for pain relief, appetite stimulation, and treatment of various ailments.

However, under the Narcotics Act B.E. 2522 (1979), cannabis was classified as a Category 5 narcotic, rendering its cultivation, possession, and use strictly illegal. Penalties for violations included imprisonment and heavy fines, and the substance became stigmatized as part of wider international anti-drug campaigns.

The turning point began in the late 2010s, when global shifts toward decriminalization and medical legalization influenced Thailand’s domestic policy. In 2018, Thailand became the first country in Southeast Asia to legalize cannabis for medical and research purposes (Narcotics Act (No. 7) B.E. 2562 (2019)), allowing limited use of cannabis oil, extracts, and research-based cultivation. At that time, operators were required to work closely with public agencies, such as universities or government hospitals, to cultivate and extract cannabis.

In June 2022, cannabis was officially decriminalized through its removal from the Narcotics List under the Ministerial Notification of the Ministry of Public Health (No. 8) B.E. 2565 (2022). This sparked a rapid proliferation of cannabis-related businesses—from dispensaries and cafes to wellness centers and agricultural ventures.

Nevertheless, the swift liberalization also triggered regulatory uncertainty and social debates. The lack of comprehensive oversight, concerns about recreational misuse, and rising public health risks pushed policymakers to reintroduce tighter controls, culminating in the Cannabis and Hemp Control Act (Draft Bill, 2024–2025) and ministerial notifications that now aim to balance economic opportunity with public health and social order. 

  1. New Approach of Legal Laws and Regulations in Thailand

2.1 Current Legal Framework

Following decriminalization in June 2022, cannabis entered a “grey zone” of regulation. Businesses mushroomed quickly, taking advantage of unclear restrictions, especially regarding recreational use. However, by mid-2025, the Thai government introduced new legislation and ministerial regulations to formally control cannabis cultivation, distribution, marketing, and consumption.

Key provisions include:

  • Cultivation Standards: Cultivation of cannabis and hemp requires compliance with Thai GACP (Good Agricultural and Collection Practices) standards, ensuring both quality and traceability of cannabis flowers.
  • Licensing Requirements: Cultivation, import/export, sales, and processing of cannabis require specific licenses issued by the Food and Drug Administration (FDA) and relevant ministries under the Public Health Act B.E. 2535 (1992) and ministerial notifications.
  • Medical-Only Orientation: Cannabis is recognized as a controlled plant for medical and health purposes. Recreational use remains outside the scope of the law and is implicitly prohibited.
  • Doctor’s Prescription Requirement:
    • Any sale of cannabis flowers intended for smoking or direct consumption must be tied to medical use, supported by a prescription from a licensed physician (Ministerial Notification on Controlled Cannabis Products B.E. 2566 (2023)).
    • Any cannabis distillate, extract, or oil with THC exceeding 0.2% w/w is classified as a controlled substance under the Narcotics Act and may only be dispensed upon a doctor’s prescription.
    • Extracts with THC not exceeding 0.2% w/w may be incorporated into cosmetics, herbal, or food supplements, subject to FDA product registration, quality controls, and labeling requirements.
  • Usage Restrictions: Smoking cannabis in public places remains subject to penalties under the Public Health Act on public nuisance. Marketing and advertising are prohibited from promoting recreational consumption or targeting minors (Ministerial Regulation on Cannabis Advertising B.E. 2566 (2023)).
  • Import & Export Controls: Cross-border trade of cannabis or hemp requires pre-approval from the Ministry of Public Health, in line with Thailand’s obligations under the Single Convention on Narcotic Drugs 1961 and domestic legislation.

2.2 Impact on Businesses

These rules have reshaped the cannabis landscape. Dispensaries and recreational-style outlets face heightened scrutiny, while medical clinics, licensed manufacturing plants, pharmaceutical companies, and wellness enterprises benefit from clearer compliance pathways.

Notably, businesses engaged in the sale of cannabis flowers or high-THC distillates (>0.2% THC w/w) must operate strictly as medical establishments, employing licensed doctors authorized to prescribe cannabis products. This effectively transforms retail-style models into clinically regulated practices, raising compliance and operational costs.

Foreign investment in cannabis remains restricted under the Foreign Business Act B.E. 2542 (1999), which caps foreign ownership in agricultural and service sectors unless exemptions are granted. While the Board of Investment (BOI) offers privileges for certain high-value industries, cannabis has not yet been included in BOI-promoted activities. In practice, without a permanent Cannabis Act, obtaining BOI promotion for cannabis businesses is unlikely.

Additionally, intellectual property (IP) protections for cannabis strains, cultivation techniques, and extraction processes are increasingly important, as licensing agreements and IP filings help safeguard competitiveness in a regulated market.

  1. The Future of Cannabis Business in Thailand and Risk Assessment

3.1 Opportunities and Policy Direction

Despite regulatory tightening, the government continues to view cannabis as a sector with high potential in:

  • Medical tourism and integrative health services.
  • Pharmaceutical production with EU-GMP certification for cannabis-derived medicines.
  • Agriculture, with cannabis and hemp positioned as high-value crops under Thai GACP.
  • Industrial hemp exports, including textiles, food supplements, and construction materials.

While rumors persist that the government may re-criminalize cannabis, such a move would face strong resistance—including potential class actions from over one million licensed cannabis operators. More realistically, cannabis will remain regulated for medical, industrial, and research purposes, rather than being reclassified as a narcotic.

3.2 Risks in Cannabis Business

  1. Regulatory Uncertainty
    • Laws remain in flux. Political changes or international obligations may prompt abrupt policy reversals.
    • Example: The 2022–2023 decriminalization wave was quickly followed by 2024–2025 restrictive reforms.
  2. Criminal Liability
    • Unauthorized possession, sale, or use outside medical purposes may trigger penalties under the Narcotics Act B.E. 2522 (1979) or ministerial cannabis regulations.
    • High risk: Dispensing cannabis flowers or >0.2% THC distillates without a prescription may result in imprisonment, fines, and license revocation.
  3. Public Health and Social Concerns
    • Businesses risk reputational damage if linked to recreational misuse, underage sales, or public nuisance. Such events may also lead to license suspension by the FDA.
  4. Foreign Investor Restrictions
    • The Foreign Business Act limits foreign participation in agriculture and cannabis-related services, unless exemptions are granted.
  5. Banking and Financing Risks
    • Cannabis remains a “no-bank” sector in Thailand. Commercial banks typically refuse financing, credit facilities, or lending to cannabis operators due to compliance risks and reputational concerns.
  6. Cross-Border Legal Conflicts
    • Exporting cannabis products without authorization can violate ASEAN neighbors’ narcotics laws, leading to severe penalties. Exporters must hold FDA export licenses, while importers must obtain permits from the destination country.
  7. Compliance and Licensing Costs
    • Meeting Thai GACP and GMP standards requires significant investment. Smaller operators may be priced out, resulting in consolidation favoring larger, well-capitalized firms.

3.3 Risk Mitigation Strategies

  • Robust Legal Due Diligence: Review licensing requirements, corporate structure, and contracts with qualified legal counsel.
  • Strict Prescription Protocols: Employ licensed doctors and establish patient consultation systems for prescribing cannabis flowers and high-THC distillates.
  • Regulatory Monitoring: Retain compliance teams or external counsel to monitor ministerial notifications and regulatory changes.
  • Corporate Structuring: Form vetted joint ventures with reliable Thai partners. Conduct strict due diligence to avoid fraudulent actors in the market.
  • Product & Marketing Compliance: Adhere to THC content limits, labeling rules, and advertising restrictions. Avoid recreational branding.
  • Risk Management & Insurance: Obtain liability insurance and adopt strong corporate governance policies.
  • Diversification: Focus on industrial hemp, medical cannabis, and pharmaceutical-grade extracts, which carry fewer political and legal risks.
  • Cross-Border Legal Review: Secure legal opinions in both Thailand and destination countries to ensure compliance with international drug control treaties.

Conclusion

The cannabis industry in Thailand represents both opportunity and risk. Thailand stands as a pioneer in Southeast Asia, opening pathways for medical, wellness, and industrial cannabis. Yet the regulatory environment remains fluid, and businesses face legal, financial, and reputational challenges.

Of particular importance is the strict requirement that cannabis flowers and all cannabis distillates with more than 0.2% THC w/w can only be sold with a doctor’s prescription. Violations in this area carry serious criminal and civil liabilities and will be a central enforcement priority going forward.

For investors and operators, success depends on rigorous compliance, sound structuring, and proactive legal strategy. By aligning with Thailand’s evolving regulatory framework, businesses can capture opportunities while minimizing risk.

At ILAWASIA CO., LTD., we provide comprehensive legal support for cannabis operators. Our Partner, Tanadee Pantumkomon, is one of the most experienced counsels in Thailand on cannabis cultivation, extraction, and cannabis product manufacturing. Our services cover FDA licensing and permits, corporate structuring, tax planning, dispute resolution, and cross-border advisory—ensuring that our clients’ investments are secure and compliant.

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