The second param fort historia function is deprecated, so it would be much nicer to pass params as an array:
$terms = get_terms( array(
'taxonomy' => 'vcategory',
'hide_empty' => false,
) );
But if you want to show a select filled with terms of given taxonomy, there’s a function for that:
wp_dropdown_categories( array(
'show_option_all' => 'All',
'orderby' => 'name',
'order' => 'ASC',
'hide_empty' => 1, // change to 0 if empty terms should be shown to
'echo' => 1,
'selected' => 0,
'name' => 'categoryfilter',
'taxonomy' => 'vcategory',
'value_field' => 'slug',
) );