Vettel and team mate Kimi Raikkonen could only qualify on the third row of the grid in Barcelona, behind both Mercedes and both Red Bulls, and were unable to beat the latter to victory following the Silver Arrows’ double retirement.
But following a positive day’s running at this week’s test in Spain, Vettel thinks Ferrari should be in the position to fight for a first win of the season in Monte Carlo.
“I think Monaco should be a strong track for us, last year we were very competitive there,” he said.
“Now we have improved the car in the areas you need for that Grand Prix so I think it should help.
“Here in Barcelona we were as competitive as expected, with the exception of Saturday. Now we are not in the best position, we are not the favourites going to Monaco either, as the favourites remain Mercedes, but we try very hard and if there is a chance to win we'll try to win.
“We go step by step, not looking too far ahead. I'm convinced that the chance is there.”
Championship leader Nico Rosberg has won the past three events in Monaco for Mercedes, with Red Bull claiming the three victories prior to that.
Michael Schumacher was Ferrari’s last Monaco winner in 2001.