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At least 16 people have perished after a massive fire broke out at a garment factory in Bangladesh, with authorities stating that the death toll could climb.

Sixteen bodies have been found but were burned impossible to identify, the firefighters reported.

Distraught relatives converged outside the multi-story factory in Mirpur, Dhaka on Tuesday in seeking their family members still missing.

The fire, which started at the factory around lunchtime, was extinguished after several hours. But an nearby chemical warehouse kept burning, authorities said.

Up until 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been entirely put out, news sources reported.

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

According to bystanders, the chemical warehouse housed industrial bleaches, synthetic polymers and chemical peroxide, all of which can intensify fires. Plastic also produces toxic fumes when combusted.

Law enforcement and armed forces are still trying to locate the proprietors of the factory and the warehouse, fire service director Mohammad Tajul Islam Chowdhury briefed the media.

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

Weeping family members gathered outside the fire-damaged buildings, many of them grasping photographs of their missing relatives.

Among them is a man looking frantically for his daughter, Farzana Akhter.

"When I was informed of the fire, I rushed here. But I still have been unable to find her... I just want my daughter back," he told journalists.

The catastrophic occurrence has yet again highlighted the hazardous conditions facing Bangladesh's apparel manufacturing, which employs millions of workers and is a significant source of foreign revenue for the nation.