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The development will include a 24.8-hectare urban area and two luxury tourism resorts of over 100 hectares.
But it is not clear when it will get under way.
Situated 1,000 m above sea level in the Hoang Lien Son Mountain Range, Mu Cang Chai, home to several ethnic minority peoples, is a seven-hour drive northwest of Hanoi.
Its rice terraces stretch across 2,200 ha of mountainside.
They have been repeatedly named among the world’s best by international travel magazines.
Earlier this year American magazine Condé Nast Traveler listed Mu Cang Chai among the "world's 40 most colorful places."
Rice terraces in Mu Cang Chai in northern Vietnam. Video by Hoang Hiep
