MVVM architecture consists of three parts:
Model contains the structure of an entity. In simple terms it contains data of an object.
View is the visual layer of the application. It displays the data contained inside the Model. In angular terms, this will be the HTML template of a component.
ViewModel is an abstract layer of the application. A viewmodel handles the logic of the application. It manages the data of a model and displays it in the view.
View and ViewModel are connected with data-binding (two-way data-binding in this case). Any change in the view, the viewmodel takes a note and changes the appropriate data inside the model.