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At least 16 persons have lost their lives after a huge fire broke out at a clothing factory in Bangladesh, with emergency services cautioning that the number of victims could increase.

Sixteen bodies have been recovered but were charred impossible to identify, the firefighters stated.

Distraught relatives assembled outside the four-storey factory in Dhaka's Mirpur area on that day in seeking their family members still not found.

The fire, which erupted at the factory around midday, was put out after several hours. But an adjacent chemical warehouse continued to burn, authorities reported.

Until 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been entirely put out, journalistic accounts reported.

Fire service officials have not established which of the two buildings was the origin point.

Based on witnesses, the chemical warehouse housed bleaching powder, synthetic polymers and chemical peroxide, all of which can intensify fires. Polymer products also releases toxic fumes when burned.

Law enforcement and armed forces are still trying to locate the proprietors of the factory and the warehouse, emergency services head Mohammad Tajul Islam Chowdhury briefed reporters.

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

Tearful family members stood outside the burned 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 cannot locate her... I just want my child back," he told reporters.

The devastating event has another time highlighted the security issues affecting Bangladesh's clothing sector, which provides jobs for millions of workers and is a significant contributor to export earnings for the country.