Vector graphics are created in graphics packages and consist of shapes called objects.
It is possible to edit each object separately, for example, change the shape, colour, size and position.
Even if an object in a vector graphic is quite large, it doesn't need a lot of computer memory. Therefore the file size of a vector graphic is often very small.
Vector graphics are scalable - ie when you resize them, they do not lose quality.
Use the red slider to zoom into the vector graphic below. Notice how as you zoom further in, the image scales perfectly and does not lose quality.
Source : http://www.bbc.co.uk/schools/gcsebitesize/dida/graphics/bitmapvectorrev2.shtml