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.
Battles of Bouamlong
Beginning in 1946, France fought the Viet Minh insurrection in French Indochina, including the Kingdom of Laos. When it lost that war, Laotian neutrality was established in the 1954 Geneva Agreements. When France withdrew most of its military in conformity with the treaty, the United States filled the vacuum with purportedly civilian paramilitary instructors. A North Vietnamese-backed communist invaded during the opium harvest season of 1953. It settled in northeastern Laos adjacent to the border of the Democratic Republic of Vietnam.