diff --git a/packages/vim-python/build.sh b/packages/vim-python/build.sh
index a35c30651..32e20344b 100755
--- a/packages/vim-python/build.sh
+++ b/packages/vim-python/build.sh
@@ -3,8 +3,8 @@ TERMUX_PKG_DESCRIPTION="Vi IMproved - enhanced vi editor"
 TERMUX_PKG_DEPENDS="ncurses, vim-runtime, python"
 # vim should only be updated every 50 releases on multiples of 50.
 # Update both vim and vim-python to the same version in one PR.
-TERMUX_PKG_VERSION=8.1.0500
-TERMUX_PKG_SHA256=4ba0e6e099c4a6565e1c510ef3a26e452eed1b3ff8a8e02ada9b66c164da785e
+TERMUX_PKG_VERSION=8.1.0518
+TERMUX_PKG_SHA256=36988911a0399a77c2b9874655b3a08915b804c2d8890c1abb4b1242c48c95fc
 TERMUX_PKG_SRCURL="https://github.com/vim/vim/archive/v${TERMUX_PKG_VERSION}.tar.gz"
 TERMUX_PKG_EXTRA_CONFIGURE_ARGS="
 vim_cv_getcwd_broken=no
diff --git a/packages/vim-python/vimrc b/packages/vim-python/vimrc
index 7f2111e39..45d68a236 100644
--- a/packages/vim-python/vimrc
+++ b/packages/vim-python/vimrc
@@ -46,9 +46,7 @@ if !&sidescrolloff
 endif
 set display+=lastline
 
-if &encoding ==# 'latin1' && has('gui_running')
-  set encoding=utf-8
-endif
+set encoding=utf-8
 
 if &listchars ==# 'eol:$'
   set listchars=tab:>\ ,trail:-,extends:>,precedes:<,nbsp:+
diff --git a/packages/vim/build.sh b/packages/vim/build.sh
index f6e76d724..dadb513cd 100755
--- a/packages/vim/build.sh
+++ b/packages/vim/build.sh
@@ -3,8 +3,8 @@ TERMUX_PKG_DESCRIPTION="Vi IMproved - enhanced vi editor"
 TERMUX_PKG_DEPENDS="ncurses, vim-runtime"
 # vim should only be updated every 50 releases on multiples of 50.
 # Update both vim and vim-python to the same version in one PR.
-TERMUX_PKG_VERSION=8.1.0500
-TERMUX_PKG_SHA256=4ba0e6e099c4a6565e1c510ef3a26e452eed1b3ff8a8e02ada9b66c164da785e
+TERMUX_PKG_VERSION=8.1.0518
+TERMUX_PKG_SHA256=36988911a0399a77c2b9874655b3a08915b804c2d8890c1abb4b1242c48c95fc
 TERMUX_PKG_SRCURL="https://github.com/vim/vim/archive/v${TERMUX_PKG_VERSION}.tar.gz"
 TERMUX_PKG_EXTRA_CONFIGURE_ARGS="
 vim_cv_getcwd_broken=no
diff --git a/packages/vim/vimrc b/packages/vim/vimrc
index 7f2111e39..45d68a236 100644
--- a/packages/vim/vimrc
+++ b/packages/vim/vimrc
@@ -46,9 +46,7 @@ if !&sidescrolloff
 endif
 set display+=lastline
 
-if &encoding ==# 'latin1' && has('gui_running')
-  set encoding=utf-8
-endif
+set encoding=utf-8
 
 if &listchars ==# 'eol:$'
   set listchars=tab:>\ ,trail:-,extends:>,precedes:<,nbsp:+