Not all Vietnamese resisted the French conquest, and some even welcomed it. The monarchy, through decades of repression, had lost the support of the people and Tu Duc, in the eyes of large segments of the peasantry, had lost his mandate to rule. He had been able to protect his people neither from foreign aggression nor from an unusually high incidence of natural disasters such as floods, famines, locusts, droughts, and a cholera epidemic in 1865 that killed more than 1 million people. Tu Duc's repression of Catholics also created a large opposition group ready to cooperate with the French, and those who did were often rewarded with lands vacated during the French invasion. Much of this land, however, was given to French colons (colonial settlers), often in sizable holdings of 4,000 hectares or more. Gradually a French-Vietnamese landholding class developed in Cochinchina. Vietnamese, however, were appointed only to the lower levels of the bureaucracy established to administer the new colony. Seeking to finance the growing bureaucracy, the early admiral-governors of Vietnam viewed the colony as the source of the necessary revenue. Rice exports, forbidden under the monarchy, reached 229,000 tons annually in 1870. Taxes extracted from Cochinchina increased tenfold in the first decade of French control. State monopolies and excise taxes on opium, salt, and alcohol eventually came to provide 70 percent of the government's operating revenue.

In 1887 France formally established the Indochinese Union, comprising the colony of Cochinchina and the protectorates of Annam, Tonkin, and Cambodia, with Laos being added as a protectorate in 1893. There was a rapid turnover among governorsgeneral of the Indochinese Union, and few served a full five-year term. One who did, Paul Doumer (1897-1902), is considered to have been the architect of a colonial system under which Vietnam was politically dominated and economically exploited. Following the partitioning of Vietnam into three parts, the emperor was stripped of the last vestiges of his authority. In 1897 the powers of the kinh luoc (emperor's viceroy) were transferred to the Resident Superieur at Hanoi, who governed in the name of the emperor. That same year, the Privy Council or Co Mat Vien (see Glossary) in Annam was replaced with a French-controlled Council of Ministers. The following year in Annam, the French took over tax collection and payment of officials. Most of the Vietnamese scholar-officials had refused to cooperate with the French, but those who did were restricted to minor or ceremonial positions. Consequently, Frenchmen were recruited to staff a new, continually expanding bureaucracy. By 1925 there were 5,000 European administrators ruling an Indochinese population of 30 million, roughly the same number used to administer British India, which had a population more than ten times as large. Under the French laws applicable to individuals, Vietnamese were prohibited from traveling outside their districts without identity papers and they were not allowed toedc to publish, meet, or organize. They were subject to corvee, and they could be imprisoned at the whim of any French magistrate. The colonial police enforced the law through a network of French and Vietnamese agents.

Land alienation was the cornerstone of economic exploitation under the colonial government. By 1930 more than 80 percent of the riceland in Cochinchina was owned by 25 percent of the landowners, and 57 percent of the rural population were landless peasants working on large estates. Although the situation was somewhat better in the north, landless peasants in Annam totaled 800,000 and in Tonkin nearly 1 million. Heavy taxes and usurious interest rates on loans were added burdens on the peasants. More than ninety percent of rubber plantations were French owned. Twothirds of the coal mined in Vietnam (nearly two million tons in 1927) was exported. Manufacturing was limited to cement and textiles, partly to placate French industrialists who saw Indochina as a market for their own goods. Naval shipyards and armament factories built under the Nguyen dynasty were dismantled under the French. Much of the craft industry survived, however, because it produced affordable consumer goods in contrast to imported French goods, which only the French colons or wealthy Vietnamese could afford.

French efforts at education in the early decades of colonial rule were negligible. A few government quoc ngu schools were established along with an Ecole Normale to train Vietnamese clerks and interpreters. A few Vietnamese from wealthy families, their numbers rising to about ninety by 1870, were sent to France to study. Three lycees (secondary schools), located in Hanoi, Hue, and Saigon, were opened in the early 1900s, using French as the language of instruction. The number of quoc ngu elementary schools was gradually increased, but even by 1925 it was estimated that no more than one school-age child in ten was receiving schooling. As a result, Vietnam's high degree of literacy declined precipitously during the colonial period. The University of Hanoi, founded in 1907 to provide an alternative for Vietnamese students beginning to flock to Japan, was closed for a decade the following year because of fear of student involvement in a 1908 uprising in Hanoi. In Tonkin and Annam, traditional education based on Chinese classical literature continued to flourish well into the twentieth century despite French efforts to discourage it. The triennial examinations were abolished in 1915 in Tonkin and in 1918 in Annam. China, which had always served as a source of teaching materials and texts, by the turn of century was beginning to be a source of reformist literature and revolutionary ideas. Materials filtering in from China included both Chinese texts and translations of Western classics, which were copied and spread from province to province.

Data as of December 1987