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Implementing a Layer 2 VPN includes the following benefits:

Terminating a Layer 2 VPN into a Layer 2 VPN using the interworking (iw0) software interface eliminates the limitation of bandwidth on the tunnel interfaces used for these configuration scenarios. Instead of using a physical Tunnel PIC for looping the packet received from the Layer 2 VPN to another Layer 2 VPN, Junos OS is used to link both the Layer 2 VPN routes.
Layer 2 VPNs enable the sharing of a provider's core network infrastructure between IP and Layer 2 VPN services, reducing the cost of providing those services. A Layer 2 MPLS VPN allows you to provide Layer 2 VPN service over an existing IP and MPLS backbone.
From a service provider’s point of view, a Layer 2 MPLS VPN allows the use of a single Layer 3 VPN (such as RFC 2547bis), MPLS traffic engineering, and Differentiated Services (DiffServ).
Service providers do not have to invest in separate Layer 2 equipment to provide Layer 2 VPN service. You can configure the PE router to run any Layer 3 protocol in addition to the Layer 2 protocols. Customers who prefer to maintain control over most of the administration of their own networks might want Layer 2 VPN connections with their service provider instead of a Layer 3 VPN.