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.
France–Vietnam relations
Vietnam obtained independence following the First Indochina War. In 1945, Hồ Chí Minh declared an independent Democratic Republic of Vietnam, which was recognized by the fellow Communist governments of China and the Soviet Union. Fighting lasted until March 1954, when the Việt Minh won the decisive victory against French forces at the grueling Battle of Điện Biên Phủ. This led to the partition of Vietnam into the Democratic Republic of Vietnam in the north, under Việt Minh control, and the State of Vietnam in the south, which had the support of the United States, the United Kingdom, and France. It was at the 1954 Geneva Conference that France relinquished any claim to territory in the Indochinese peninsula. Laos and Cambodia also became independent in 1954, but were both drawn into the Vietnam War.