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At least 16 people have perished after a huge fire started at a apparel factory in Bangladesh, with authorities cautioning that the fatality count could climb.

Sixteen bodies have been found but were burned beyond recognition, the fire department stated.

Heartbroken relatives assembled outside the four-level factory in Dhaka's Mirpur area on that day in seeking their dear ones still unaccounted for.

The fire, which broke out at the factory around midday, was extinguished after several hours. But an neighboring chemical warehouse kept burning, emergency services said.

Up until 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been completely doused, media reports said.

Fire department authorities have not ascertained which of the two buildings ignited initially.

According to bystanders, the chemical warehouse contained industrial bleaches, synthetic polymers and chemical peroxide, all of which can worsen fires. Polymer products also emits toxic fumes when burned.

Law enforcement and armed forces are still trying to locate the owners of the factory and the warehouse, emergency services head the fire service official informed the media.

An investigation on whether the warehouse was running according to regulations is also in progress, he mentioned.

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

Included in the crowd is a man looking frantically for his daughter, his family member.

"When I learned of the fire, I came running. But I still haven't found her... I just want my daughter back," he told reporters.

The devastating event has once again underscored the safety concerns facing Bangladesh's clothing sector, which employs countless of workers and is a major source of foreign revenue for the country.