Finding an easier way of performing tasks is one of the major functions of developers. Finding ways of DECLARING instances in a more simple way has led to the use of the two letters ‘vm’ to declare variable instances. Every vue instance begins by creating a completely fresh Vue instance. This uses the vue function.  

Above is an illustration of how instance declaration is done in Vue. To some extent, we can say that Vue instance declaration was inspired by the Model-View-View-Model (MVVM) pattern. vm SHORT form for ViewModel has earned the status of conventional instance declaration in vue. Many vue applications have root Vue instances embedded with new Vue are organized into NESTED trees with reusable mechanisms.

Naming an instance as vm is not compulsory, ALTHOUGH many developers use it this way. As long as a compiler is able to compile successfully with minimal ERRORS and produce an output on the template, any naming can be used so long as it is easy and simple to understand.