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At least 16 persons have died after a massive fire broke out at a garment factory in Bangladesh, with officials warning that the death toll could increase.

A total of sixteen bodies have been found but were incinerated unrecognizable, the fire department said.

Grief-stricken relatives assembled outside the four-level factory in Dhaka's Mirpur area on Tuesday in looking for their loved ones still unaccounted for.

The fire, which started at the factory around noon, was extinguished after several hours. But an adjacent chemical warehouse remained ablaze, authorities confirmed.

Up until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been completely doused, media reports indicated.

Fire department authorities have not ascertained which of the two buildings ignited initially.

Based on eyewitnesses, the chemical warehouse stored industrial bleaches, synthetic polymers and chemical peroxide, all of which can intensify fires. Plastic also emits hazardous smoke when burned.

Police and military officers are still attempting to find the proprietors of the factory and the warehouse, emergency services head the department director told journalists.

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

Weeping family members waited outside the charred buildings, many of them clutching photographs of their lost relatives.

Included in the crowd is a man searching desperately for his daughter, his family member.

"When I heard about the fire, I rushed here. But I still haven't found her... I just want my daughter back," he told news media.

The devastating event has yet again highlighted the security issues affecting Bangladesh's apparel manufacturing, which engages millions of workers and is a significant source of foreign revenue for the country.