A pilot must execute a missed approach if a required visual reference (normally the runway or its environment) is not in sight upon reaching the MAP or the pilot decides it is unsafe to continue with the approach and landing to the runway.
Determination of its location is done by the designers of the instrument approach procedure, but typically this is a point on the final approach course of a non-precision approach, from which the aircraft would be able to continue its descent from the MDA to the runway threshold while maintaining a standard 3° descent angle while being assured obstacle clearance.
If the pilot does not have the required visual reference to continue the descent from the MDA at this point, he/she must continue to fly at or above the MDA, and the rapidly steepening descent angle required to complete a successful landing on the runway means that a safe and successful approach becomes less likely.
The concept of VDP was developed by the FAA to encourage pilots to decide to initiate a missed approach before reaching the MAP, in a situation where the runway or its environment is not visible at a normal descent angle.
Conversely, if the runway is visible at the VDP, the pilot may continue descent, following a standard descent angle to the runway, while being assured terrain and obstacle clearance.