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 colonial empire
Following the Vietnamese victory Dien Bien Phu and the signing of the 1954 Geneva Accords. France agreed to withdraw its forces from all its colonies in French Indochina, while stipulating that Vietnam would be temporarily divided at the 17th parallel, with control of the north given to the Viet Minh as the Democratic Republic of Vietnam under Ho Chi Minh, and the south becoming the State of Vietnam. The refusal of Ngô Đình Diệm (the US-supported president of the first Republic of Vietnam [RVN]) to allow elections in 1956, as had been stipulated by the Geneva Conference, eventually led to the Vietnam War.