Vim Syntax Highlighting does not work

This is the absolute minimum you need to put in your ~/.vimrc if you intend to use vim as your primary editor:

" activates filetype detection
filetype plugin indent on

" activates syntax highlighting among other things
syntax on

" allows you to deal with multiple unsaved
" buffers simultaneously without resorting
" to misusing tabs
set hidden

" just hit backspace without this one and
" see for yourself
set backspace=indent,eol,start

Anything else depends on your taste, workflow and needs.

You need to have following settings in .vimrc file as per arch linux documentation

filetype plugin on
syntax on