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A minimum of 16 individuals have lost their lives after a massive fire started at a clothing factory in Bangladesh, with emergency services warning that the death toll could rise.

Sixteen bodies have been retrieved but were burned beyond recognition, the fire service said.

Grief-stricken relatives gathered outside the four-storey factory in Dhaka's Mirpur area on Tuesday in search of their dear ones still unaccounted for.

The blaze, which started at the factory around noon, was brought under control after several hours. But an neighboring chemical warehouse kept burning, authorities said.

Up until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been fully extinguished, journalistic accounts said.

Fire service officials have not determined which of the two buildings ignited initially.

Per bystanders, the chemical warehouse contained industrial bleaches, synthetic polymers and chemical peroxide, all of which can intensify fires. Plastic also releases poisonous gases when combusted.

Security personnel are still trying to locate the operators of the factory and the warehouse, fire service director Mohammad Tajul Islam Chowdhury told the media.

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

Crying family members waited outside the fire-damaged buildings, many of them grasping photographs of their lost relatives.

Present at the scene is a man seeking urgently 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 child back," he expressed to news media.

The devastating event has another time emphasized the hazardous conditions plaguing Bangladesh's clothing sector, which engages numerous of workers and is a significant contributor to export earnings for the South Asian economy.