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A minimum of 16 persons have lost their lives after a huge fire broke out at a clothing factory in Bangladesh, with emergency services warning that the fatality count could climb.

Sixteen bodies have been recovered but were incinerated beyond recognition, the fire department stated.

Heartbroken relatives assembled outside the multi-story factory in Mirpur, Dhaka on Tuesday in looking for their family members still unaccounted for.

The inferno, which broke out at the factory around midday, was brought under control after three hours. But an nearby chemical warehouse continued to burn, authorities confirmed.

As late as 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been completely doused, news sources said.

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

According to bystanders, the chemical warehouse housed industrial bleaches, synthetic polymers and chemical peroxide, all of which can accelerate fires. Synthetic materials also emits poisonous gases when combusted.

Security personnel are still attempting to find the owners of the factory and the warehouse, fire service director the department director told reporters.

An probe on whether the warehouse was functioning with proper authorization is also currently underway, he noted.

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

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

"When I heard about the fire, I rushed here. But I still have been unable to find her... I just want my loved one back," he stated to journalists.

The tragic incident has yet again highlighted the security issues facing Bangladesh's garment industry, which provides jobs for millions of workers and is a major provider of export earnings for the country.