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At least 16 persons have lost their lives after a massive fire broke out at a clothing factory in Bangladesh, with emergency services warning that the number of victims could increase.

A total of sixteen bodies have been recovered but were burned impossible to identify, the fire service reported.

Grief-stricken relatives gathered outside the four-level factory in the Mirpur district of Dhaka on that day in looking for their loved ones still missing.

The fire, which erupted at the factory around noon, was put out after multiple hours. But an adjacent chemical warehouse remained ablaze, officials reported.

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

Fire service officials have not determined which of the two buildings was the origin point.

According to bystanders, the chemical warehouse contained bleaching powder, plastic and chemical peroxide, all of which can accelerate fires. Synthetic materials also produces poisonous gases when burned.

Law enforcement and armed forces are still trying to locate the proprietors of the factory and the warehouse, emergency services head Mohammad Tajul Islam Chowdhury told reporters.

An probe on whether the warehouse was operating legally is also currently underway, he added.

Tearful family members gathered outside the fire-damaged buildings, many of them holding photographs of their unaccounted for relatives.

Present at the scene is a man seeking urgently for his daughter, his family member.

"When I was informed of the fire, I came running. But I still have been unable to find her... I just want my daughter back," he expressed to news media.

The catastrophic occurrence has another time highlighted the security issues facing Bangladesh's apparel manufacturing, which employs countless of workers and is a major contributor to economic income for the South Asian economy.