"After tourism and agriculture, it's green gold."
Thailand has now stepped into an uncharted frontier as Asia’s first “legal cannabis country.” Starting with the lifting of the ban on medical cannabis, Thailand has taken the step of de facto decriminalization in 2022, attracting the attention of global investors and companies. The government has clearly stated its goal: “Make Thailand the cannabis hub of Asia.” However, behind this lies a multi-layered and complex strategy that encompasses agriculture, medicine, tourism, trade, and policy, which goes beyond mere economic policy and goes as far as redefining the country’s national identity.
"Lifting the ban" is not the goal, it's the beginning of an industrial revolution
Thailand’s move towards cannabis in earnest is not just a liberal social reform. It is a very real gamble to redesign the country’s economic model itself, and behind it lies the urgent issue of breaking away from tourism dependency and “revitalizing rural areas” after COVID-19. What emerged was a diversified industrial structure centered on cannabis and hemp. By comprehensively linking the introduction of high-value-added crops through medical cannabis, the creation of consumer markets for CBD, food, cosmetics, etc., entry into the textile and building materials market as a sustainable material, and strengthening the experience-based economy through cannabis tourism, cannabis is beginning to play the role of “new rice.”
What is Thailand's "Cannabis Valley" initiative?
The Thai government is promoting the “Cannabis Valley” initiative from 2023 onwards, with bases in Chiang Mai in the north, Buriram in the northeast and Nakhon Sawan in the central region. This initiative is a national strategy that aims to make the local economy independent through cannabis by forming a vertically integrated model that goes beyond mere cultivation and sales, including research institutes (universities and pharmaceutical laboratories), processing and manufacturing industries (CBD extraction, food and beverage processing), medical and tourist facilities (spas, clinics and hotels), and export bases (for ASEAN and the Middle East). Companies from South Korea, Israel and Canada are already in the process of negotiating partnerships with this ecosystem, and GMP (pharmaceutical quality) and HACCP (food hygiene) certifications are being rapidly developed with the assumption that the product will be exported. In other words, Thailand is aiming to transform itself from a “simple supplier of raw materials” to a “cannabis powerhouse that exports finished products”.
"Asian Rivals" are still asleep
Currently, Thailand is the only country in Asia that has fully lifted the ban on cannabis. China, India, South Korea, and Japan all remain cautious, even in the medical field. This has earned Thailand the status of “the only legal supplier” in Asia. Particular attention is being paid to the Middle Eastern market (UAE, Israel, Saudi Arabia) and the demand for medical cannabis in Europe, and the Thai government is also preparing a trade agreement to accelerate overseas certification and export of “Thai CBD” from 2024. Thailand, which secured “legal status” while Asia was lagging behind, is trying to maximize its first-mover advantage in market domination. The CEO of a Canadian CBD company says, “What the gold rush needs is a land title, not a pickaxe.”
Domestic challenges: Risk of changes in legal and political systems
However, it is hard to say that it is all smooth sailing. In Thailand, there are moves to consider a partial re-ban due to the change of government. The current law is based on decriminalization, and a comprehensive “cannabis law” has yet to be enacted, which has created legal gray areas and slowed investment decisions. In addition, issues such as the moral gap between urban and rural areas, the problem of underage use, the balance with tourism, and the risk of illegal exports, as well as the lack of “social tolerance” specific to a rapidly growing market, are also issues, and the gaps in the system could become breeding grounds for confusion. In this situation, concerns that it will end as a short-term bubble cannot be wiped away, and true system design and the fostering of social consensus are required.
Can Thailand become the “Netherlands of Asia”?
“Cannabis tourism,” “CBD exports,” “regeneration of rural areas,” and “response to aging” – Thailand is trying to solve multiple social issues at the same time through the new cannabis industry. However, in order to dig up truly sustainable “green gold,” a balance between system and culture, economy and ethics is essential. Looking at the examples of Canada, the United States, Israel, and Germany, it is clear that the act of “legalization” alone does not make it a mature industry, and rather the subsequent development is the real challenge. That is why Thailand’s path is not simply to become a “legalization country,” but to create Asia’s first “cannabis economy as a culture,” and it is entering a phase where its maturity as a nation will be tested. The key to opening up the future is not legal reform, but vision and implementation capabilities.