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.
Tonkin (French protectorate)
French colonial administration lasted until March 9, 1945, during Japanese occupation (1941–1945). Although French administration was allowed during Japanese occupation as a puppet government, Japan briefly took full control of Vietnam in March 1945 under the Empire of Vietnam and Tonkin became the site of the Vietnamese Famine of 1945 during this period. At the end of the war, the north of Vietnam (including Tonkin) saw a sphere of influence by China while the south was briefly occupied by the British for French forces to regroup and regain control. Harry Truman at the Potsdam Conference, stated an intention to hand the region back to French rule, a sharp contrast to Franklin D. Roosevelt's strong opposition to colonialism and commitment to support the Viet Minh. However, after the Japanese withdrew from Vietnam, Ho Chi Minh proclaimed the establishment of the Democratic Republic of Vietnam in Ba Đình Square. Hanoi was later reoccupied by the French and conflict between the Viet Minh and France broke out into the First Indochina War.