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At least 16 people have perished after a huge fire broke out at a apparel factory in Bangladesh, with emergency services warning that the fatality count could climb.

16 bodies have been retrieved but were charred beyond recognition, the firefighters stated.

Grief-stricken relatives assembled outside the multi-story factory in Dhaka's Mirpur area on that day in seeking their dear ones still missing.

The blaze, which broke out at the factory around midday, was extinguished after three hours. But an nearby chemical warehouse continued to burn, authorities said.

Until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been completely doused, journalistic accounts reported.

Fire department authorities have not ascertained which of the two buildings was the origin point.

Based on witnesses, the chemical warehouse housed bleaching powder, plastic materials and industrial peroxide, all of which can intensify fires. Synthetic materials also emits hazardous smoke when ignited.

Law enforcement and armed forces are still searching for the operators of the factory and the warehouse, fire service director the fire service official briefed the media.

An inquiry on whether the warehouse was operating legally is also ongoing, he noted.

Weeping family members gathered outside the fire-damaged buildings, many of them grasping photographs of their unaccounted for relatives.

Present at the scene is a man seeking urgently for his daughter, his family member.

"When I learned of the fire, I hurried to the scene. 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 security issues plaguing Bangladesh's garment industry, which employs millions of workers and is a crucial provider of foreign revenue for the South Asian economy.