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.
History of Vietnam since 1945
After World War II and the collapse of Vietnam's monarchy, France attempted to re-establish its colonial rule but was ultimately defeated in the First Indochina War. The Geneva Accords in 1954 partitioned the country temporarily in two with a promise of democratic elections in 1956 to reunite the country. However, the United States and South Vietnam insisted on United Nations supervision of any election to prevent fraud, which the Soviet Union and North Vietnam refused. North and South Vietnam therefore remained divided until The Vietnam War ended with the Fall of Saigon in 1975.