As you said, MPLS VPN uses tags (labels) and other stuff to make sure that the customers are secure and completely isolated from each other (we can say that MPLS is highly secure. It's security is equivalent to that found in traditional Layer 2 networks such as Frame Relay or ATM), however if you have an internet access or your security policy requires a detailed security measures you can then use a firewall, but most of the customers rely on MPLS VPNs without firewalls.
Agree with everything Mohammed said. What i would add is that it really depends on what level of security your customer requires. Some companies with high levels of security implement IPSEC VPN's across their MPLS VPN which adds a further layer of protection in terms of security.
It is unlikely but it just takes a misconfiguration by the SP and your traffic could be leaked to another customer and vice-versa.
Having said that we use an SP MPLS network and we rely purely on the MPLS VPN for segregation of traffic.
Taking both your points, what if the customer is passing confidential data over the MPLS VPN and wants to make sure that even the service provider doesn't have the capability to view that data. In that case, his requirement would definitely dictate IPsec as the service provider definitely retains the capability to look into that data since its passing through their routers.
This document is an early notification of a behaviour change that will be introduced in IOS XR release 6.5.
IOS XR configuration principles relevant for this article are:
On router platforms all interfaces must be by defaul...
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The Cisco EPN system incorporates a network architecture designed to consolidate multiples services on a single Multiprotocol Label Switching (MPLS) transport network. This network is designed primarily based on Application ...