Vietnamese provider of consulting and outsourcing services AIC and Vabiotech, a Vietnamese vaccine manufacturer and supplier, have signed a deal with Japanese pharmaceutical company Shionogi & Co (TYO:4507) to produce COVID-19 vaccines based on recombinant DNA protein technology, Reuters news agency reported on Tuesday, quoting local media.

VnExpress cited health ministry official Nguyen Ngo Quang as stating that the deal between the Japanese and Vietnamese firms was subject to a confidentiality agreement, but would be based on the local production of recombinant protein-based vaccines.

A source at Vabiotech confirmed the company was in talks with Japan's Shionogi but refused to give more details, citing the confidentially agreement.

Last week, Vabiotech said it had produced its first test batch of Sputnik V COVID-19 vaccines which it said would be shipped to Russia for quality checks, Reuters said.

In May 2021, Shionogi had said it may start supplying COVID-19 vaccines later this year.