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.
North Vietnam
After about 300 years of partition by feudal dynasties, Vietnam was again under one single authority in 1802 when Gia Long founded the Nguyễn dynasty, but the country became a French protectorate after 1883 and under Japanese occupation after 1940 during World War II. Soon after Japan surrendered on 2 September 1945, the Việt Minh in the August Revolution entered Hanoi, and the Democratic Republic of Vietnam was proclaimed on 2 September 1945: a government for the entire country, replacing the Nguyễn dynasty. Hồ Chí Minh became leader of the Democratic Republic of Vietnam. U.S. President Franklin Roosevelt had spoken against French rule in Indochina, and the U.S. was supportive of the Viet Minh at this time.