New Zealand were handed their second defeat of the tournament against Australia, losing by 86 runs against the title holders after a defeat to Pakistan at Edgbaston.
The Black Caps haven’t sealed a spot in the semi-finals with one game left against tournament favorites England.
But Vettori says New Zealand can make it to the next stages and lift the title.
"I still definitely feel that this New Zealand side can make history and win it all," Vettori said in an ICC Media column.
"Two losses at this stage will be tough to take but they have been so good for so long and have so many experienced players that I am sure they will pull through.
"It is a bit tighter now, but I still think they will feel pretty confident. Even if every result goes against them, their net run rate should still put them into the semi-finals.
"The nature of this New Zealand team for an extended period of time now has been to stay pretty constant, to not panic."
Vettori says New Zealand should stick to their game plan which has given them success in the tournament.
"They will understand that they have played some really good cricket in this tournament," he said.
"They will need to call on all their nous to get through against the hosts.
"But even if they don't win against England and go through via net run rate, or other results going their way, I still think they will walk into the semi-finals thinking they can beat anyone on their day."
Vettori's main concern is New Zealand's ability to put on competitive totals on slow surfaces.
"The only question mark for them will be the surfaces they were playing on. It looks like across the board the surfaces are getting lower and slower," he said.
"That makes it more difficult for batting and those partnerships are going to become more important, I am sure that will be a big focus against England."