Graham Henry's side open their campaign against Italy in Pool C before games against Portugal, Scotland and Romania.
New Zealand, whose only World Cup victory came over two decades ago in 1986, finished third in the 2003 tournament behind runners-up Australia and winners England.
But Lomu, who shot to prominence in the 1995 competition and holds the record for the most World Cup tries, believes Henry's team are strong enough to win this year.
"I hope it is their year," he said. "When you're playing in the World Cup it all comes down to one game and you have to basically give it all in one go.
"This team has a great chance to do it but, having said that, anything can happen. Rugby is a funny game and that sort of thing happens."
Lomu's own ambitions of playing in this year's tournament were ended when he failed to secure a Super 14 contract towards the end of last year.
He has since been linked with moves to clubs in Australia and Wales but insists he will not commit to anything until after the World Cup.
He added: "I have options but I am not making any decisions because of the World Cup. All the teams don't start until after it so there is no real hurry to do anything.
"When I get to the stage where I wake up in the morning and don't feel like playing rugby anymore it will probably be time for me to quit.
"That's the thing, rugby is a game you can play as long as you want and whenever you want, it is just depending on if your body holds up."
Lomu is currently in Hong Kong having participated in the 10s tournament that took place on Wednesday and Thursday, and he will also attend the Hong Kong Sevens this weekend - a tournament at which he first made a name for himself 11 years ago.
And the 31-year-old praised the event as the ideal way for young players to earn recognition at international level.
"I don't think the coaches would have seen me if it wasn't for the Hong Kong Sevens," he said.
"It is a great stepping stone. For any youngster who wants to get themselves known or seen by the national selectors, this is the way to do it."