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At least 16 people have died after a enormous fire broke out at a garment factory in Bangladesh, with emergency services stating that the death toll could increase.

A total of sixteen bodies have been retrieved but were burned impossible to identify, the firefighters said.

Distraught relatives gathered outside the multi-story factory in Mirpur, Dhaka on Tuesday in seeking their family members still not found.

The blaze, which erupted at the factory around noon, was extinguished after three hours. But an nearby chemical warehouse kept burning, emergency services said.

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

Fire service officials have not ascertained which of the two buildings caught fire first.

Based on bystanders, the chemical warehouse stored bleaching powder, plastic and hydrogen peroxide, all of which can worsen fires. Synthetic materials also produces poisonous gases when ignited.

Police and military officers are still attempting to find the proprietors of the factory and the warehouse, fire department chief Mohammad Tajul Islam Chowdhury informed the media.

An investigation on whether the warehouse was operating legally is also in progress, he mentioned.

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

Present at the scene is a man searching desperately for his daughter, Farzana Akhter.

"When I heard about the fire, I hurried to the scene. But I still cannot locate her... I just want my loved one back," he expressed to reporters.

The catastrophic occurrence has once again highlighted the safety concerns facing Bangladesh's garment industry, which engages numerous of workers and is a significant contributor to foreign revenue for the South Asian economy.