The young Dragons booked their place in a first ever final with a dramatic 18-17 victory over South Africa in France.
Ashley Evans crossed the whitewash for a sensational try with just minutes to spare and Sam Davies held his nerve to slot the last-minute conversion.
Hours later England joined them in the final with a 33-21 triumph over four-time winners New Zealand.
“It’s a World Cup final and you couldn’t wish for better opponents than England,” said Hodges.
“They’ll be clear favourites, as Argentina were [in the pool stage] and as South Africa were.
“But if we can beat Argentina and can beat South Africa then we can certainly beat England.
“The last thing we spoke to them about before we left the team room was that this group would go and make some history.
“And that’s exactly what they did. And the circumstance they were pretty extraordinary.
“We were a bit worried in the coaches’ box that maybe we had exhausted the opportunities that were going to be presented to us to win the game.
“But Sam’s been very, very consistent to a particular high level during the course of this tournament with his kicking game and his attacking game.
“He deserved huge credit for that (cross) kick.”
The old enemy beat Wales 28-15 to secure the U20 RBS 6 Nations Grand Slam in March.
But Hodges reckons that Colwyn Bay result will have no baring and Wales can take huge confidence from their journey to Sunday’s final in Vannes.
“We were quite disappointed with our performance that day,” added Hodges.
“We didn’t present them with too many challenges if we’re honest.
“It’s going to be tough. They’ve got a particularly dangerous back three and a big heavy pack.
“With all due respect to where we’ve come from in that Six Nations tournament, this is a one-off World Cup final.
“Not on many occasions coaches or players will be able to say they’ve partaken in a World Cup final.
