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At least 16 individuals have lost their lives after a massive fire erupted at a garment factory in Bangladesh, with officials cautioning that the number of victims could increase.

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

Distraught relatives assembled outside the multi-story factory in Dhaka's Mirpur area on that day in seeking their family members still missing.

The fire, which broke out at the factory around noon, was put out after several hours. But an adjacent chemical warehouse continued to burn, emergency services said.

Up until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been entirely put out, media reports reported.

Emergency responders have not established which of the two buildings caught fire first.

Based on witnesses, the chemical warehouse contained industrial bleaches, plastic materials and chemical peroxide, all of which can accelerate fires. Synthetic materials also emits toxic fumes when combusted.

Police and military officers are still searching for the operators of the factory and the warehouse, fire department chief the department director informed journalists.

An inquiry on whether the warehouse was functioning with proper authorization is also in progress, he added.

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

Among them is a man searching desperately for his daughter, Farzana Akhter.

"When I was informed of the fire, I hurried to the scene. But I still cannot locate her... I just want my child back," he expressed to reporters.

The tragic incident has another time highlighted the hazardous conditions plaguing Bangladesh's garment industry, which employs countless of workers and is a significant contributor to foreign revenue for the nation.