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At least 16 people have perished after a enormous fire erupted at a apparel factory in Bangladesh, with officials stating that the death toll could rise.

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

Grief-stricken relatives gathered outside the four-storey factory in Dhaka's Mirpur area on Tuesday in search of their loved ones still unaccounted for.

The fire, which erupted at the factory around lunchtime, was extinguished after multiple hours. But an adjacent chemical warehouse kept burning, authorities reported.

As late as 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been fully extinguished, news sources reported.

Emergency responders have not ascertained which of the two buildings was the origin point.

Based on witnesses, the chemical warehouse contained bleaching powder, plastic and industrial peroxide, all of which can accelerate fires. Polymer products also releases toxic fumes when ignited.

Law enforcement and armed forces are still trying to locate the operators of the factory and the warehouse, emergency services head Mohammad Tajul Islam Chowdhury informed the media.

An inquiry on whether the warehouse was functioning with proper authorization is also ongoing, he mentioned.

Tearful family members stood outside the burned buildings, many of them clutching photographs of their lost relatives.

Among them is a man seeking urgently for his daughter, Farzana Akhter.

"When I was informed of the fire, I rushed here. But I still cannot locate her... I just want my loved one back," he expressed to journalists.

The catastrophic occurrence has another time underscored the safety concerns affecting Bangladesh's garment industry, which employs numerous of workers and is a major provider of export earnings for the country.