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At least 16 individuals have died after a huge fire broke out at a clothing factory in Bangladesh, with officials stating that the death toll could rise.

Sixteen bodies have been recovered but were charred impossible to identify, the fire department said.

Distraught relatives converged outside the four-level factory in Mirpur, Dhaka on Tuesday in seeking their dear ones still unaccounted for.

The fire, which started at the factory around midday, was brought under control after several hours. But an adjacent chemical warehouse continued to burn, emergency services reported.

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

Emergency responders have not established which of the two buildings ignited initially.

According to bystanders, the chemical warehouse contained bleaching powder, plastic materials and hydrogen peroxide, all of which can intensify fires. Synthetic materials also releases hazardous smoke when combusted.

Law enforcement and armed forces are still trying to locate the owners of the factory and the warehouse, emergency services head the department director told reporters.

An inquiry on whether the warehouse was running according to regulations is also currently underway, he added.

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

Among them is a man looking frantically for his daughter, his family member.

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

The catastrophic occurrence has once again highlighted the security issues facing Bangladesh's clothing sector, which provides jobs for millions of workers and is a major source of foreign revenue for the nation.