The Geneva Peace Agreement in May 1954 set the foundation for the developments in the next coming years in Vietnam. The Agreement accorded that Vietnam was to be divided at the 17th parallel into communist North and democratic South Vietnam giving each country independence, a 200 day legal migration period and general elections to be held at both zones in 1956 to reunify Vietnam. The division would cause developments in each country including economic development through the growing nationalism in North Vietnam, political developments through political ineptitude and corruption in South Vietnam and social changes through growing education rates in North Vietnam and social upheaval in South Vietnam that were triggered through the nature of the Agreement. These developments show the considerable importance of the Geneva Peace Agreement having both positive and negative impacts on developments of Vietnam acting as direct consequence from the accords.
One of the key economic consequences of the Geneva Peace Agreement was a chance for growing nationalism within Northern Vietnam, this shows the Geneva Peace Agreements has a positive impact and considerable importance. The economic stability of the North side was unlike the South. Despite the downfall of Agricultural reforms in 1956 the DRV authorities were able to begin to increase food production allowing the North the stabilize itself. By 1960 North Vietnam had made significant economic progress as the result of Ho Chi Minh setting up Cooperative Plans, making actions to unify Vietnam possible. The role that the Geneva Agreement played in this was its accords to give North Vietnam independence to carry out these developments. From this farmers began to work on each other’s land with their own tools. This was significant because the industrialisation grew as well as the economy. North Vietnam