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.
Việt Minh
Within days, the Chinese Kuomintang (Nationalist) Army arrived in Vietnam to supervise the repatriation of the Japanese Imperial Army. The Democratic Republic of Vietnam therefore existed only in theory and effectively controlled no territory. A few months later, the Chinese, Vietnamese and French came to a three-way understanding. The French gave up certain rights in China, the Việt Minh agreed to the return of the French in exchange for promises of independence within the French Union, and the Chinese agreed to leave. Negotiations between the French and Việt Minh broke down quickly. What followed was nearly ten years of war against France. This was known as the First Indochina War or, to the Vietnamese, the French War.