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No fewer than 16 people have lost their lives after a enormous fire erupted at a garment factory in Bangladesh, with officials cautioning that the number of victims could rise.

16 bodies have been recovered but were charred unrecognizable, the fire department said.

Distraught relatives assembled outside the multi-story factory in the Mirpur district of Dhaka on Tuesday in seeking their family members still unaccounted for.

The blaze, which started at the factory around midday, was put out after multiple hours. But an neighboring chemical warehouse remained ablaze, authorities reported.

Up until 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been fully extinguished, journalistic accounts said.

Fire department authorities have not established which of the two buildings was the origin point.

According to bystanders, the chemical warehouse contained industrial bleaches, plastic and hydrogen peroxide, all of which can intensify fires. Synthetic materials also produces toxic fumes when ignited.

Security personnel are still trying to locate the operators of the factory and the warehouse, emergency services head the fire service official briefed the media.

An inquiry on whether the warehouse was running according to regulations is also in progress, he noted.

Tearful family members gathered outside the fire-damaged buildings, many of them grasping photographs of their missing relatives.

Included in the crowd is a man seeking urgently for his daughter, Farzana Akhter.

"When I learned of the fire, I came running. But I still cannot locate her... I just want my child back," he stated to news media.

The catastrophic occurrence has another time underscored the hazardous conditions facing Bangladesh's apparel manufacturing, which provides jobs for millions of workers and is a significant contributor to economic income for the country.