I would build a dictionary with the vendor keys before loading the CSV.
Then you can just do a has_key check in the dictionary for each read line in the CSV.
Then add the result to the dataset.
existsDic = {}
vDS = system.db.runQuery('Select VendorID,VendorName FROM tblVendors','MyDatabaseConn')
existsDic = dict(svr)
for line in d.readlines():
if existsDic.has_key(line[0]):
#DoSomething for existing Vendor
else:
#Do something for new Vendor
Something along those lines