Lloyd Peers and Morgan Allen return to the starting line-up at lock and No 8, as does Ospreys outside half Matthew Jarvis, who is currently the third highest points scorer in the tournament. Blues and Glamorgan Wanderers flanker Josh Navidi, who has experience of playing in New Zealand, will lead the team for this final Pool A clash as the Welsh youngsters bid for a place in the top four of the competition.
Davies said, "It's been the toughest selection we have had to make since we started the Wales Under 20 programme and that's great credit to the players and all the efforts they have put in to make this a very competitive squad.
"New Zealand have never been beaten in this competition, having won both titles to date so we respect them but we are not going into the match with any fear. The 22 players will all have a vital role to play, and we have experienced leaders both in the starting line-up and on the bench with squad captain Dan Watchurst.
"It's certainly an intriguing clash for us - we want to play the best teams in the world as often as possible - and the players' approach to that challenge has been superb. We have spent a lot of time focusing on getting our game right and getting ready to perform efficiently and intensely in this key match.
"The competition so far has been excellent and we are certainly looking forward to playing against New Zealand along with the two remaining games next week, which could be just as important as tomorrow's game, if not more so.
Wales Under 20 v New Zealand (Sunday 13 June, 6.10pm UK time (S4C and Sky):
Dan Fish; Kristian Phillips, Ben John, Ashley Beck, James Loxton; Matthew Jarvis, Rhys Downes (vice-capt); Rhodri Jones, Rhys Williams, Will Taylor, Lloyd Peers, James King, James Thomas, Josh Navidi (capt), Morgan Allen
Replacements: Ieuan Davies, Dan Watchurst, Edward Siggery, Rhys Jenkins, Gareth Davies, Steven Shingler, Scott Williams