Diem cancelled it under the pretext that North Vietnam's communist government wouldn't keep the elections democratic; however another reason was that Ho Chi Minh was more popular than Diem and would have won the reunification election.
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Ho Chi Minh had a "handle" on that program, he wasn't worried about it. It was Diem of South Vietnam who refused the elections...saying the communists might win it (something to the effect that they were fixed).
In 1954, the Vietminh forces of Vietnam defeated the French at the Battle of Dien Bien Phu, and the nation was temporarily divided into two sections, north and south. The people of the south chose Ngo Dinh Diem as their ruler and Ho Chi Minh ruled the north. Diem refused to go along with the planned elections in 1956 to unite the nation so the Vietminh members in the south created the Viet Cong and the war between north and south for control of the country began. Diem realized he would probably lose the elections. Many communists had moved south from the north and would probably not vote for Diem's regime. The US encourage Diem with aid and money. He was even considered a "George Washington of South Vietnam" by some of the American media. With US support, Diem felt he could defeat the communists so he declared a republic in South Vietnam. The government of South Vietnam requested military advisors from the United States to help train the South Vietnamese army. MrV
Ngo Dien Diem
Diem was assassinated in 1963 (the same year that Kennedy was assassinated).
In both elections of 1952 and 1956, Eisenhower's main opponent was Adlai Stevenson (Full name: Adlai Ewing Stevenson ll). It seems odd that Adlai Stevenson won the nomination two times in a row.