Will FPS be increased if we use Vertex lighting,
instead of using lightmaps?
No, quite the opposite if you use it instead of lightmaps. As Mustang already explained, you'd have to subdivide your meshes, making more polys and more polys means less FPS.
What you save is videoram because you're not using textures.
The key is to use BOTH lightmaps and vertex colors, and find a balance between them so that you use lightmaps where you have well-spaced vertices and you use vertex colors on geometry which already has densely packed vertices. Find a good balance between not using too many textures for lightmaps and not needlessly subdividing too many meshes for vertex colors and you're home and hosed.