The Indian team has lost successive Test and ODI rubbers to host nations South Africa and New Zealand before coming a cropper in the ongoing Asia Cup in Bangladesh where it failed to make the final.
However, Vengsarkar is hopeful the team would bring back the Twenty20 World Cup it won in its inaugural year in 2007.
"Of late, India is not doing too well. But I still have a strong belief that India would do extremely well in Dhaka (in T20) because the wickets over there are similar to Indian wickets.
The T20 event is scheduled from March 16 to April 6.
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The former chief selector felt spinners hold the key in the sub-continent conditions and was also happy with the return of Dhoni, who skipped the Asia Cup due to injury, in beefing up the batting department.
"Dhoni will definitely make a lot of difference. He is an excellent captain and has been around for almost six to seven years. He is an experienced campaigner and he has won so many matches with his batting as well," Vengsarkar said.
"He is a crucial player at number six and he is a good keeper also. Dhoni is a very important member of the team and I am sure he will do well. Of late, he has not done well abroad but I am sure, the team under him has still plenty of hope," he said.