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At least 16 persons have died after a enormous fire erupted at a clothing factory in Bangladesh, with emergency services cautioning that the fatality count could increase.

Sixteen bodies have been recovered but were incinerated beyond recognition, the fire department reported.

Grief-stricken relatives gathered outside the four-storey factory in Dhaka's Mirpur area on that day in seeking their family members still not found.

The fire, which broke out at the factory around midday, was put out after several hours. But an adjacent chemical warehouse continued to burn, authorities said.

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

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

According to eyewitnesses, the chemical warehouse contained industrial bleaches, synthetic polymers and hydrogen peroxide, all of which can accelerate fires. Polymer products also produces hazardous smoke when ignited.

Law enforcement and armed forces are still attempting to find the owners of the factory and the warehouse, fire service director the department director briefed the media.

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

Tearful family members gathered outside the burned buildings, many of them grasping photographs of their unaccounted for relatives.

Present at the scene is a man looking frantically for his daughter, his loved one.

"When I heard about the fire, I rushed here. But I still have been unable to find her... I just want my loved one back," he stated to reporters.

The devastating event has once again underscored the security issues plaguing Bangladesh's clothing sector, which engages numerous of workers and is a significant contributor to economic income for the South Asian economy.