Some of them were adopted by Parliament. To date, expansion in foreign direct investment has been limited. Some argue that the reform has not been far-reaching enough and that informal institutions such as product standards, trading rules, out-of-court mechanisms to resolve disputes are still weak, together with weak capacity to enforce these regulations.

It is difficult, or perhaps too early, to assess the implications of Cambodia’s accession to the WTO. The expected decline in garment exports, (at the end of 2008 when safeguards on Chinese garment imports cease), however, definitely requires urgent attention to diversify the export base. More importantly the workers, 90 per cent of whom are women, need to be retrained and find other employment as they return to their villages. It is important that Padek prepares for this eventuality