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No fewer than 16 individuals have lost their lives after a massive fire started at a clothing factory in Bangladesh, with officials warning that the fatality count could increase.

A total of sixteen bodies have been retrieved but were charred unrecognizable, the fire service reported.

Distraught relatives assembled outside the four-storey factory in Mirpur, Dhaka on that day in seeking their loved ones still not found.

The blaze, which started at the factory around noon, was brought under control after three hours. But an nearby chemical warehouse remained ablaze, emergency services reported.

Until 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been entirely put out, media reports indicated.

Emergency responders have not ascertained which of the two buildings ignited initially.

Based on eyewitnesses, the chemical warehouse contained chemical bleaching agents, synthetic polymers and industrial peroxide, all of which can worsen fires. Synthetic materials also emits poisonous gases when ignited.

Security personnel are still trying to locate the proprietors 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 currently underway, he noted.

Crying family members stood outside the fire-damaged buildings, many of them clutching photographs of their unaccounted for relatives.

Included in the crowd is a man searching desperately for his daughter, Farzana Akhter.

"When I heard about the fire, I hurried to the scene. But I still haven't found her... I just want my child back," he expressed to reporters.

The devastating event has another time underscored the safety concerns plaguing Bangladesh's clothing sector, which engages countless of workers and is a major contributor to export earnings for the South Asian economy.