Expansion has meant that the nearby town of Nes is now a suburb of Vágur. Vágur has a sports hall next to the football grounds, a swimmingpool by the school, a High School and a clinic which offers the services of doctors, nurses and dentists. There is also a hotel, Post Office, banks and various shops.

The port area, which is 14 m in depth, is situated on the northern part of the fjord. The port authorities can offer services of piloting (lods), water and fire-fighting, and in connection with the harbour there is a very modern fish factory and auctioneers for fish. The town has a slipway, a fleet of fishing vessels and a filleting factory.

The first hydroelectric power station in the Faroe Islands was built in Botni north west of Vágur in 1921. It is now supplemented by a modern diesel power station on the south side of the fjord.