Layer 3 VPN (L3VPN) is a type of VPN mode that is built and delivered on OSI layer 3 networking technologies. The entire communication from the core VPN infrastructure is forwarded using layer 3 virtual routing and forwarding techniques. Layer 3 VPN is also known as virtual private routed network (VPRN).
In an MPLS Layer 3 VPN, routing occurs on the service provider's routers. The provider routers route and forward VPN traffic at the entry and exit points of the transit network. ... Based on the source address, the PE router filters route advertisements and imports them into the appropriate VRF table.
Configuration guide: https://support.huawei.com/enterprise/en/doc/EDOC1100202471/86a639a5/configuration-process-l3vpn-service