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.
France–Thailand relations
In the meantime, France was establishing a foothold in neighbouring Vietnam, putting it on a collision course with Siam. Under the orders of Napoleon III, French gunships under Rigault de Genouilly attacked the port of Da Nang in 1858, causing significant damage, and holding the city for a few months. de Gnouilly sailed south and captured the poorly defended city of Saigon in 1859. From 1859 to 1867, French troops expanded their control over all six provinces on the Mekong delta and formed a French Colony, Cochin China. In 1863, France and King Norodom of Cambodia signed a treaty of protection with France, which transferred the country from Siamese and Vietnamese overlordship to French colonial rule. A new treaty was signed between France and Siam on 15 July 1867.