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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 stating that the death toll could increase.

Sixteen bodies have been recovered but were charred beyond recognition, the firefighters said.

Distraught relatives converged outside the four-level factory in the Mirpur district of Dhaka on Tuesday in looking for their family members still missing.

The fire, which broke out at the factory around midday, was put out after several hours. But an nearby chemical warehouse kept burning, authorities reported.

Up until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been completely doused, news sources reported.

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

Based on witnesses, the chemical warehouse housed industrial bleaches, synthetic polymers and industrial peroxide, all of which can intensify fires. Synthetic materials also emits hazardous smoke when combusted.

Law enforcement and armed forces are still trying to locate the owners of the factory and the warehouse, fire department chief Mohammad Tajul Islam Chowdhury briefed journalists.

An investigation on whether the warehouse was running according to regulations is also currently underway, he noted.

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

Included in the crowd is a man seeking urgently for his daughter, his loved one.

"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 told reporters.

The devastating event has yet again highlighted the safety concerns facing Bangladesh's garment industry, which engages millions of workers and is a major contributor to export earnings for the country.