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At least 16 people have died after a huge fire erupted at a garment factory in Bangladesh, with authorities stating that the fatality count could increase.

A total of sixteen bodies have been found but were incinerated beyond recognition, the fire service stated.

Heartbroken relatives assembled outside the four-level factory in Mirpur, Dhaka on Tuesday in search of their family members still unaccounted for.

The blaze, which erupted at the factory around midday, was brought under control after three hours. But an neighboring chemical warehouse remained ablaze, authorities confirmed.

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

Fire service officials have not established which of the two buildings was the origin point.

Based on bystanders, the chemical warehouse contained chemical bleaching agents, plastic materials and hydrogen peroxide, all of which can accelerate fires. Synthetic materials also releases hazardous smoke when combusted.

Law enforcement and armed forces are still searching for the operators of the factory and the warehouse, fire department chief Mohammad Tajul Islam Chowdhury told the media.

An probe on whether the warehouse was operating legally is also currently underway, he mentioned.

Crying family members gathered outside the burned buildings, many of them grasping photographs of their unaccounted for relatives.

Included in the crowd is a man searching desperately for his daughter, his loved one.

"When I heard about the fire, I hurried to the scene. But I still haven't found her... I just want my loved one back," he expressed to journalists.

The devastating event has another time highlighted the security issues facing Bangladesh's garment industry, which engages millions of workers and is a crucial source of foreign revenue for the country.