A vector displacement map is a 2D image that records height and directional information for points on the model as 32 bit floating point color information. The map stores both the distance a vertex will be displaced (based on the pixel value in the image map) and the direction of the vertex displacement.
Because they contain directional information for vertex displacement, vector displacement maps can faithfully record complex sculpted features that overhang or undercut other detail on the model.
Compared to other displacement maps, vector displacement maps are generally straightforward to extract, and produce none of the artifacts that are sometimes associated with the Ray Casting extraction method. They produce virtually artifact-free results when applied to a target mesh for rendering.
You can use vector displacement maps to represent detail not modeled or sculpted into the original model, as a method for transferring sculpted detail from one model to another, and as images for stencils and stamps on the sculpting tools.