This paper proposed that an MPLS-based VPN using next-generation If switches and appropriate set of traffic engineering algorithms is the best way to implement QoS-capable IP VPNs. While ATM-based solution would not rely scalable the number of connections becomes too large, MPLS-based VPNs’ efficiency could be confirmed network delay time through performance evaluation. And we evaluated the performance about the If VPN based on proposed MPLS, at the result of evaluation. We figured out that delay increased more slowly in case of VPN based on MPLS comparing with the VPN based on ATM which has rapid delay increasement. Therefore we confirm that the VPN based on MPLS has high speed of packet processing and high degree of network efficiency through the performance evaluation.