That's correct, you can even overprovision CPU and memory. Although the overall performance will mainly depend on the workload, resources may become exhausted faster, the more vCPUs you assing to each VM. As an example, you may be able to run 20 VMs with a single vCPU each without issue on this host, but running 3 VMs with 4 vCPUs may slow down the whole system. And don't forget that the host itself also requires resources.
André