Abstract: Yunnan-Vietnam Railway pushed the industrialization process in Yunnan province， which included the initiating of industrial ideas and the changing of capital flowing，as well as before the building of road nets, the railway was the main carrier for the importing of foreign machinery equipments. Yunnan's structure of economic geography underwent the transformation, which was drawn by YunnanVietnam Railway in the period of 1910~1949. The railway was linked with a group of cities, for instance, Mengtsz, Kochiu, Kaiyuan, Yiliang, as well as Kunming, which situated south eastern Yunnan and central part of Yunnan.The industrialization and modernization of the cities along the railway accelerated， which were mainly displayed in expansion of the output of coal and tin, and the upgrading of manufacturing and communication industries, and the development of electric power factories.