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.
Vietnam
The northern part of Vietnam was part of Imperial China for over a millennium, from 111 BC to AD 939. An independent Vietnamese state was formed in 939, following Vietnamese victory in the battle of Bạch Đằng River. Successive Vietnamese imperial dynasties flourished as the nation expanded geographically and politically into Southeast Asia, until the Indochina Peninsula was colonised by the French in the mid-19th century. Following a Japanese occupation in the 1940s, the Vietnamese fought French rule in the First Indochina War. On 2 September 1945, President Hồ Chí Minh declared Vietnam's independence from France under the new name of the Democratic Republic of Vietnam. In 1954, the Vietnamese declared victory in the battle of Điện Biên Phủ which took place between March and May 1954 and culminated in a major French defeat. Thereafter, Vietnam was divided politically into two rival states, North Vietnam (officially the Democratic Republic of Vietnam) and South Vietnam (officially the Republic of Vietnam). Conflict between the two sides intensified in what is known as the Vietnam War with heavy intervention by the United States on the side of South Vietnam from 1965 to 1973. The war ended with a North Vietnamese victory in 1975. Vietnam was then unified under a communist government but remained impoverished and politically isolated. In 1986, the Communist Party of Vietnam (CPV) initiated a series of economic and political reforms that began Vietnam's path toward integration into the world economy.