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No fewer than 16 individuals have died after a enormous fire broke out at a garment factory in Bangladesh, with emergency services stating that the number of victims could increase.

Sixteen bodies have been recovered but were charred beyond recognition, the firefighters stated.

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

The blaze, which erupted at the factory around noon, was put out after several hours. But an nearby chemical warehouse remained ablaze, officials said.

Until 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been completely doused, news sources said.

Fire department authorities have not established which of the two buildings caught fire first.

Based on bystanders, the chemical warehouse contained bleaching powder, plastic materials and industrial peroxide, all of which can accelerate fires. Polymer products also produces poisonous gases when burned.

Law enforcement and armed forces are still trying to locate the operators of the factory and the warehouse, fire department chief Mohammad Tajul Islam Chowdhury told the media.

An probe on whether the warehouse was running according to regulations is also ongoing, he mentioned.

Weeping family members gathered outside the burned buildings, many of them clutching photographs of their missing relatives.

Included in the crowd is a man looking frantically 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 reporters.

The catastrophic occurrence has another time underscored the safety concerns facing Bangladesh's garment industry, which engages millions of workers and is a significant contributor to foreign revenue for the country.