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.
Empire of Vietnam
During World War II, after the fall of France and establishment of Vichy France, the French had lost practical control in French Indochina to the Japanese, but Japan stayed in the background while giving the Vichy French administrators nominal control. This changed on 9 March 1945 when Japan officially took over. To gain the support of the Vietnamese people, Imperial Japan declared it would return sovereignty to Vietnam. Emperor Bảo Đại declared the Treaty of Huế made with France in 1884 void. Trần Trọng Kim, a renowned historian and scholar, was chosen to lead the government as prime minister.