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.
French colonial empire
It was only after its defeat in the Franco-Prussian War of 1870–1871 and the founding of the Third Republic (1871–1940) that most of France's later colonial possessions were acquired. From their base in Cochinchina, the French took over Tonkin (in modern northern Vietnam) and Annam (in modern central Vietnam) in 1884–1885. These, together with Cambodia and Cochinchina, formed French Indochina in 1887 (to which Laos was added in 1893 and Guangzhouwan in 1900). In 1849, the French concession in Shanghai was established, lasting until 1946. The French also had concessions in Guangzhou and Hankou (now part of Wuhan).