Vilips carded a stellar nine-under 62 to be Thursday's pacesetter at the Vidanta Vallarta course in Vallarta.
Vilips revelled in a hot start and finish, with birdies on his initial five holes and four more successive birdies to close his round.
"Had it on a string for the first nine," Vilips said.
"Got a little loose in the middle and got it back on course toward the end of the round.
"It was lift, clean and place today so being in the fairway was a must for me and I took advantage of those drives that I hit."
The 25-year-old has endured a rugged PGA Tour season, being cut in nine of his previous 20 tournaments before teeing off at the Greg Norman designed course in Mexico.
With a best finish this season of tied for 13th in New Orleans in April, Vilips rebounded spectacularly in Mexico to hold a one-stroke lead from Japan's Kensei Hirata.
Americans Ben Griffin and Jeffrey Kang share third spot with Englishman Marco Penge at seven under.
US Open champion Wyndham Clark, the only player from the top 10 in the world in the field, shot 69.
John Daly II, the son of the two-time major champion who is playing on a sponsor exemption, carded 70.
The only other Australian in the field, Cam Davis, endured a rollercoaster round featuring an eagle and three birdies but also five bogeys. He's tied for 78th at even par.
Vilips had no such problems with a round of consistent excellence, shooting 10 birdies and just a sole bogey.
Vilips won the Puerto Rico Open last year for his lone PGA Tour title, making him exempt on the tour though next season.
He's currently ranked 141st in the FedEx Cup Fall standings, with many players in the field in Mexico fighting to get into the final top 100 to remain on the elite tour.
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