Usually backup solutions should handle all stuff with VMs restore.
You can read some materials about VM replication here: VM replication over the WAN - optimizing traffic with Veeam
What about if I take snapshot and restore the VM in newly created datastore
will it work ?
No. You need of other files to restore vm.
Other options to vm backup are:
VMcom Backup: https://vmcom.com/
HPE VM Explorer Free:https://www.vladan.fr/hpe-vm-explorer-free-version-vmware-hyper-v
Please consider marking this answer "correct" or "helpful" if you think your question have been answered correctly.
I recommend you take a look at Veeam Backup and Replication. This is a purpose-made VM backup software that just works.
And here's a useful article on how to properly backup things: Cisco and High Availability - Following the backup rule