Economy of Vietnam
Until the French colonization in the mid-19th century, Vietnam's economy had been mostly agrarian, subsistence-based and village-oriented. French colonizers, however, deliberately developed the regions differently as the French needed raw materials and a market for French manufactured goods, designating the South for agricultural production as it was better suited for agriculture, and the North for manufacturing as it was naturally wealthy in mineral resources. Though the plan exaggerated regional divisions, the development of exports—coal from the North, rice from the South—and the importation of French manufactured goods stimulated domestic commerce.
Economic history of Vietnam
Whatever economic progress Vietnam made under the French after 1900 benefited only the French and the small class of wealthy Vietnamese created by the colonial regime. The masses of the Vietnamese people were deprived of such benefits by the social policies inaugurated by Doumer and maintained even by his more liberal successors, such as Paul Beau (1902–07), Albert Sarraut (1911–14 and 1917–19), and Alexandre Varenne (1925–28). Through the construction of irrigation works, chiefly in the Mekong delta, the area of land devoted to rice cultivation quadrupled between 1880 and 1930. During the same period, however, the individual peasant's rice consumption decreased without the substitution of other foods. The new lands were not distributed among the landless and the peasants but were sold to the highest bidder or given away at nominal prices to Vietnamese collaborators and French speculators. These policies created a new class of Vietnamese landlords and a class of landless tenants who worked the fields of the landlords for rents of up to 60 percent of the crop, which was sold by the landlords at the Saigon export market. The mounting export figures for rice resulted not only from the increase in cultivable land but also from the growing exploitation of the peasantry.