The performance for a VMs vCPUs mostly comes down to how Qemu/KVM handles that.
When you assign a virtual CPU to a VM it is not automatically assigned to a physical CPU core (though KVM implements this via core-pinning) but rather the process gets the appropriate resources given via the Linux scheduler. However, this is intransparent for the VM which means it simply sees 1, 2, 4, or how many vCPUs you set in the settings.
With your base system having more processing power at its disposal, this should also increase your VM performance accordingly.
In short, Chris Thorpe's answer in the first link below answers it very succinctly:
Here's a serverfault forum post discussing this exact topic and here
is a great visualization which might clear up some more of your questions.