Vue.js has undergone some major rewrite for the 0.11 update, and we are now working towards the 1.0 release. Vue.js is already being used in production at companies like Optimizely..
First, Vue provides a cleaner syntax in getting and setting VM properties.
On a higher level, Vue differs from Knockout in that Vue’s component system encourages you to take a top-down, structure first, declarative design strategy, instead of imperatively build up ViewModels from bottom up. In Vue the source data are plain, logic-less objects (ones that you can directly JSON.stringify and throw into a post request), and the ViewModel simply proxies access to that data on itself. A Vue VM instance always connects raw data to a corresponding DOM element. In Knockout, the ViewModel essentially is the data and the line between Model and ViewModel is pretty blurry. This lack of differentiation makes Knockout more flexible, but also much more likely to result in convoluted ViewModels..
There are a few reasons to use Vue over Angular, although they might not apply for everyone:
Vue.js is a more flexible, less opinionated solution. That allows you to structure your app the way you want it to be, instead of being forced to do everything the Angular way. It’s only an interface layer so you can use it as a light feature in pages instead of a full blown SPA. It gives you bigger room to mix and match with other libraries. This is probably the most important distinction..