The vibrational excitation cross section of a diatomic molecule by positron impact is obtained using wavepacket propagation techniques. The dynamics was carried on a two-dimensional potential energy surface which couples a hydrogen-like harmonic oscillator to a positron via a spherically symmetric correlation polarization potential. The cross section for the excitation of the first vibrational mode is in good agreement with previous reports. Our model suggests that a positron couples to the target vibration by responding instantly to an interaction potential which depends on the target vibrational coordinate.