The Vanuatu government passed the Medical Cannabis and Industrial Hemp Act in 2021 but its regulation measures were only signed off last week.
Cultivation of the product will only be for export purposes only.
The Chairman of Parliament's Medical Cannabis and Industrial Hemp Advisory Committee, Moses Amos, said the drug will not be grown for locals and will be regulated carefully.
"In order to ensure that we can back capacity, we allow for 10 years of experience to come and invest in Vanuatu.