Even though IP VPN has practically proven itself to be a cost-effective solution, the lack of centralized capabilities of current IP VPN deployment makes the management of growing VPN networks an extremely tedious procedure. This paper proposes to use policy-based network management method to address this challenge. Firstly, a policy-based IP VPN management architecture is presented, mainly explaining the operational components concerning the IPsec. Then a detailed discussion with respect to policy information model is given. Finally, a case study for interdomain IP VPN configuration exemplifies the design and implementation of this management system based on the test-bed developed in the Networks & Services Group of University College London (UCL).