diff --git a/lib/cli/src/generators/VUE3/index.ts b/lib/cli/src/generators/VUE3/index.ts
index db9e4e4cab94..4768b4fee115 100644
--- a/lib/cli/src/generators/VUE3/index.ts
+++ b/lib/cli/src/generators/VUE3/index.ts
@@ -1,7 +1,10 @@
 import { baseGenerator, Generator } from '../baseGenerator';
+import { CoreBuilder } from '../../project_types';
 
 const generator: Generator = async (packageManager, npmOptions, options) => {
-  baseGenerator(packageManager, npmOptions, options, 'vue3', {
+  const updatedOptions = { ...options, builder: CoreBuilder.Webpack5 };
+
+  baseGenerator(packageManager, npmOptions, updatedOptions, 'vue3', {
     extraPackages: ['vue-loader@^16.0.0'],
   });
 };