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.
Second French Empire
From 1861 to 1863 France embarked on colonising experiments in Cochinchina (southern Vietnam) and Annam (central Vietnam). The conquest was bloody but successful, and supported by large numbers of French soldiers, missionaries and businessmen, as well as the local Chinese entrepreneurial element.