Answer:
Yes, The vSwitches support VLAN Tagging, otherwise if the virtual machines in an esx host are connected to different VLANS, we need to install a separate physical nic (vSwitch) for every VLAN. That is the reason vmware included the VLANtagging for vSwitches. So every v'Switch supports up to 1016 ports, and BTW they can support 1016 V'LANS if needed, but an ESX server doesn't support that many VM's.
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