The correct option is A Both statements 1 and 2 are correct.
The French saw Vietnam as a potential producer and exporter of rice. By 1931, Vietnam had become the third-largest exporter of rice in the world. However, they did little to industrialise the economy. Industrialisation was not encouraged in the country, and landlordism grew in rural areas. Large landlords took over the lands of small peasants and made them work as tenant farmers. Thus, the standard of living for the peasants declined as landlessness grew, and they were trapped in a debt cycle.