ASEAN is aiming to have free movement of capital and labour across boundaries beginning 2015. However, ASEAN not being homogeneous, the path to integration is arduous.E.g., Cambodia will be required to cut import duties,therebyadversely affecting government revenues. Since domestic revenues are already short by some 6-7 percentage-points compared to the expenditures, it will require a real effort to bridge the gap. Next, opening up of factor markets will provide Cambodian workers access to jobs across the borders, but a free inflow of capital into Cambodia would increase the demand for land. This could be contentious.