In a packet switching (packet-based) network, such as a frame relay (FR) network, which includes network resources made up of networked elements and customer premises equipment interconnected by one or more physical paths, a Virtual Private Network (VPN) is built above the underlying packet-based network and includes selected portions of the packet-based network resources. The VPN is a collection of logical nodes and virtual paths (VPs) and includes one or more virtual circuits (VCs), each VC being a logical connection between VC terminators including network elements and customer premises equipment. Segments of the VCs are carried by VPs, each VP being a logical connection established between two VP terminators which are located in either network elements or customer premises equipment. One or more VPs are multiplexed on a physical path (PP). Each VP is allocated a positive guaranteed bandwidth (VP-CIR), and each VC on a VP is also allocated a bandwidth (VC-CIR) greater than or equal to zero. Packets of information to be transmitted over a VC are provided with a unique address field to thereby identify the VCs and VPs associated with the VPN over which the packet of information will travel. Congestion control of the network is provided such that congestion control and management are carried out on a per VPN basis, and congestion outside of a VPN's logical domain does not affect the performance of the VPN.