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At least 16 people have perished after a enormous fire broke out at a garment factory in Bangladesh, with authorities warning that the fatality count could rise.

A total of sixteen bodies have been found but were burned beyond recognition, the fire department reported.

Heartbroken relatives assembled outside the multi-story factory in Dhaka's Mirpur area on that day in looking for their family members still missing.

The inferno, which erupted at the factory around noon, was extinguished after three hours. But an neighboring chemical warehouse remained ablaze, emergency services reported.

Up until 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been entirely put out, media reports indicated.

Emergency responders have not established which of the two buildings was the origin point.

According to eyewitnesses, the chemical warehouse contained chemical bleaching agents, plastic materials and chemical peroxide, all of which can accelerate fires. Plastic also emits poisonous gases when burned.

Law enforcement and armed forces are still trying to locate the owners of the factory and the warehouse, fire department chief the fire service official told the media.

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

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

Included in the crowd is a man searching desperately for his daughter, his family member.

"When I heard about the fire, I hurried to the scene. But I still have been unable to find her... I just want my daughter back," he stated to journalists.

The devastating event has another time emphasized the safety concerns affecting Bangladesh's garment industry, which engages countless of workers and is a major contributor to foreign revenue for the country.