More positively, there are emerging signs of Cambodia expanding into products offering higher export growth opportunities than traditional products (e.g. footwear, unprocessed rice, and some electronics and transport equipment), although they still remain relatively limited compared to the more traditional export basket. Diversification across export destinations is also taking place to some extent but at a much slower pace, as the major export markets remain the US and the EU (Warr and Menon, 2015). While recent increases in the real minimum wage for the garment and footwear sector may be warranted from a social policy perspective, notably after years of stagnation in real terms in the 2000s (ILO, 2016), rapid surges in labour costs without productivity improvements put additional pressures on producers.