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No fewer than 16 people have lost their lives after a enormous fire broke out at a apparel factory in Bangladesh, with officials warning that the death toll could rise.

A total of sixteen bodies have been found but were charred unrecognizable, the fire department said.

Distraught relatives gathered outside the multi-story factory in the Mirpur district of Dhaka on Tuesday in search of their family members still unaccounted for.

The fire, which erupted at the factory around midday, was brought under control after multiple hours. But an nearby chemical warehouse continued to burn, emergency services said.

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

Fire service officials have not established which of the two buildings ignited initially.

Based on witnesses, the chemical warehouse stored industrial bleaches, plastic and chemical peroxide, all of which can intensify fires. Plastic also produces poisonous gases when burned.

Police and military officers are still searching for the operators of the factory and the warehouse, fire department chief Mohammad Tajul Islam Chowdhury told reporters.

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

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

Included in the crowd is a man seeking urgently for his daughter, his loved one.

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

The catastrophic occurrence has once again underscored the safety concerns affecting Bangladesh's garment industry, which employs numerous of workers and is a major source of economic income for the nation.