The best answer anyone seems to have about that is "maybe." Yes, there was an Old Norse word "vic" meaning "bay". There was also an Old Norse word "vig" meaning "battle". Is that why they're called "vikings"? Nobody seems to know. Did vikings call themselves "vikings" at all prior to the emergence of the Anglo-Saxon word "wicing"? No one seems to know that either.
The Swedish Academy Word Book gives the "wicing" etymology from old Frisian and old English, but also says that the etymology has "disputed origin".