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At least 16 individuals have lost their lives after a huge fire erupted at a clothing factory in Bangladesh, with authorities warning that the number of victims could rise.

A total of sixteen bodies have been retrieved but were burned beyond recognition, the fire service stated.

Distraught relatives assembled outside the four-level factory in Mirpur, Dhaka on that day in seeking their loved ones still unaccounted for.

The fire, which started at the factory around lunchtime, was extinguished after multiple hours. But an nearby chemical warehouse remained ablaze, officials reported.

Until 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been fully extinguished, journalistic accounts said.

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

According to witnesses, the chemical warehouse contained chemical bleaching agents, plastic materials and industrial peroxide, all of which can accelerate fires. Synthetic materials also produces toxic fumes when burned.

Law enforcement and armed forces are still searching for the owners of the factory and the warehouse, emergency services head the fire service official informed the media.

An investigation on whether the warehouse was operating legally is also currently underway, he mentioned.

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

Present at the scene is a man searching desperately for his daughter, his loved one.

"When I was informed of the fire, I rushed here. But I still haven't found her... I just want my daughter back," he expressed to reporters.

The devastating event has once again emphasized the security issues affecting Bangladesh's apparel manufacturing, which engages numerous of workers and is a major provider of foreign revenue for the nation.