Issue link: https://read.dmtmag.com/i/1531857
Tobacco Asia 61 The government warmed up even- tually, approving the project in general. Yet there still was a huge stumbling block that needed to be overcome: cannabis is strictly illegal in Laos. However, a solu- tion as extraordinary as it is surprising was found. "We reached an understand- ing that if the government approved this project, a legal instrument would be is- sued that would grant the joint venture company that we would set up an exclu- sive right to grow, harvest, process, and export cannabis… albeit under strict gov- ernment supervision," Nousavanh told Tobacco Asia. Things taking shape The newly-created joint venture, called LTV Sole Co. Ltd. and formed by Bro Asia Lao and LTV, finally received its full-fledged operating license in Decem- ber 2023, paving the way to springing into action. As part of the deal, the gov- ernment allocated a land plot on the out- skirts of the Laotian capital, Vientiane. Likewise being part of the agreement, all import duties and other taxes for bring- ing in construction materials were offi- cially waived for LTV Sole. "It was clear from the beginning that our plants would be grown indoors in hydroponic culture, so we literally imported everything from abroad; the construction parts for our 900 square meter greenhouse, the racks, the grow lights, and of course also the seeds, which we obtained from the US," Nousavanh said. First product likely ready by Q2 2025 So far, the project's investment costs hover around the US$1.5 million mark, divulged Nousavanh. By Laotian standards, it's a gigantic amount, and all of it was shouldered by the Singaporean partners that already had assisted Nousavanh to get Bro Asia Lao up and going. Profits are elusive at this time, as LTV Sole is still in the testing phase. "At the moment, we are growing 13 different cannabis strains to determine which ones are going to yield the best active substance ratio of THC, CBD, terpenes, and others in Laos' climatic conditions," explained Nousavanh. "It's of utmost importance that Nousavanh Khounmeuang, co-director, LTV Sole Co. Ltd. Credit: Thomas Schmid