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 Indochina
After the Fall of France during World War II, the colony was administered by the Vichy government and was under Japanese occupation until March 1945, when the Japanese overthrew the colonial regime. After the Japanese surrender, the Viet Minh, a communist organization led by Hồ Chí Minh, declared Vietnamese independence, but France subsequently took back control of French Indochina. An all-out independence war, known as the First Indochina War, broke out in late 1946 between French and Viet Minh forces.