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At least 16 persons have died after a enormous fire started at a apparel factory in Bangladesh, with emergency services warning that the fatality count could increase.

16 bodies have been retrieved but were charred beyond recognition, the fire service reported.

Heartbroken relatives assembled outside the four-storey factory in the Mirpur district of Dhaka on Tuesday in search of their loved ones still not found.

The inferno, which broke out at the factory around midday, was put out after several hours. But an nearby chemical warehouse remained ablaze, officials reported.

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

Fire service officials have not established which of the two buildings caught fire first.

According to eyewitnesses, the chemical warehouse stored chemical bleaching agents, synthetic polymers and industrial peroxide, all of which can accelerate fires. Plastic also produces poisonous gases when ignited.

Law enforcement and armed forces are still trying to locate the proprietors of the factory and the warehouse, emergency services head the fire service official briefed journalists.

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

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

Present at the scene is a man seeking urgently for his daughter, his loved one.

"When I learned of the fire, I rushed here. But I still haven't found her... I just want my loved one back," he told news media.

The devastating event has another time emphasized the security issues affecting Bangladesh's apparel manufacturing, which engages millions of workers and is a significant source of foreign revenue for the country.